Chapter 10 Key Words

Pregunta	Respuesta
Adjusted Balance	The balance after partial payment less interest is subtracted from the principal.
Banker's Rule	Time is exact days/360 in calculating simple interest.
Exact Interest	Calculating simple interest using 365 days per year in time.
Interest	Principal x Rate x Time
Maturity Value	Princial plus interest (if interest is charged). Represents amount due on the due dute.
Ordinary Interest	Calculating simple interest using 360 days per year in time.
Principal	Amount of money that is originally borrowed, loaned or deposited.
Simple Interest Formula	A=P(1+rt)
Time	Expressed as years or fractional years, used to calculate simple interest.
U.S. Rule	Method that allows the borrower to receive proper interest credits when paying off a loan in more than one payment before the maturity date.

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