Mathematics of Finance |
Common terms and phrases
accumulate allowed amortization amount annual premium annuity answer asset assume balance bank bond borrower buyer called capital cash cent charges compound interest compounded semiannually computations converted monthly converted semiannually cost coupon debt December deposit depreciation determine difference discount dollar earn endowment equal equivalent estimated EXAMPLE Exercise expected factor finance Find flows focal date formula future given gives income increase interest rate investment issued June lender less loan maturity means method money is worth monthly payments months needed nominal annual rate obtained ordinary annuity original paid period person practical premium present value principal problem purchase quarterly receive repaid result rounded savings shows simple interest single sinking fund SOLUTION solve straight line Substituting Table term wants yield rate