2024-10-27T14:00:32+03:00[Europe/Moscow] en true Interest, I, P, r, t, F, Ordinary Simple Interest, Exact Simple Interest, CASH FLOW DIAGRAM, COMPOUND INTEREST, • F, • i, • m, <p>Semi annually</p>, <p>Bi monthly </p>, The nominal interest, The effective rate of interest, Equivalence, <p>Anually</p>, <p>Quarterly</p>, <p>Monthly</p> flashcards

Economics

NORSU CEA

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  • Interest
    is the amount of money paid for the use of borrowed capital or income produced by money which has been loaned
  • I
    interest
  • P
    principal or present worth
  • r
    rate of interest
  • t
    time (years)
  • F
    Accumulated amount or Future worth of money after time t
  • Ordinary Simple Interest
    is computed on the basis of 12 months of 30 days each or 360 days a year
  • Exact Simple Interest
    is based on the exact number of days in a year, 365 days for an ordinary year and 366 days for a leap year
  • CASH FLOW DIAGRAM
    It is a visual representation that shows the flow of money over time for a project or investment. It helps engineers, project managers, and decision-makers understand when costs (expenses) and revenues (income) occur during the life of a project.
  • COMPOUND INTEREST
    The interest earned by the principal, which is added to the principal, will also earn interest in the succeeding periods.
  • • F
    Compound amount at the end of “n” periods
  • • i
    Rate of interest (ordinary interest divided by m)
  • • m
    Number of periods per year

  • Semi annually

    2

  • Bi monthly

    6

  • The nominal interest
    specifies the rate of interest and the number of interest periods in one year.
  • The effective rate of interest
    is the actual or exact rate of interest on the principal during one year.
  • Equivalence
    It is obtained by setting the sum of the values on a specific comparison or focal date of one set of obligations equal to the sum of the values on the same date of another set of obligations.

  • Anually

    1

  • Quarterly

    4

  • Monthly

    12