genmath

• Math


  Science concerned with numbers and their properties, relations, and operations, and with shapes in space and their structure and measurement
• Business


  An organization or enterprising entity engaged in commercial, industrial, or professional activities
• Business math


  Deals with profit and loss. It is used by commercial companies to record and manage business works
• Interest


  The amount a borrower pays for using the money
• Principal


  The amount of money borrowed or deposited
• Rate of interest


  The interest paid on one unit of capital (P)
• Time


  The amount of time allotted for repayment of the principal plus the interest. It is a term in years
• Selling price


  The market price is taken to sell a product
• Cost price


  The original price of the product
• Profit


  If the selling price is more than the cost price, the difference in the prices is the profit
• Loss


  If the selling price is less than the cost price, the difference in the prices is the loss
• Discount


  The reduced amount in the selling price of a product
• Simple interest


  The method of interest always applies to the original principal amount with the same rate of interest for every time cycle
• Accumulated balance/Maturity value


  The final balance of an account after earning an interest over a period of time
• Ordinary interest


  Also known as the banker's interest. It is based on a 360-day year (favorable for the lender)
• Exact interest


  Based on a 365-day year (favorable for the borrower)
• Benjamin Franklin's famous observation about compound interest highlights the power of money making money and its ability to generate additional interest on accumulated earnings
• Compound interest


  • Earned both on the principal and any interest that has been earned previously
  • Interest also earns interest
  • It is the application of interest to both the original principal and accumulated interest over time
• Pioneers of compound interest

  • Balducci Pegolotti
  • Luca Pacioli
  • Richard Witt
  • Jacob Bernoulli
• Annuity


  A sequence of payments made at equal, fixed intervals or periods of time
• Term of an annuity


  The time between the first payment interval and last payment interval
• Payment interval


  The time between successive payments
• Future value of an annuity

  The sum of future values of all the payments to be made during an entire term
• Present value of an annuity

  The sum of the present values of all the payments to be made during the entire term of the annuity
• Regular or periodic payment


  The amount of each payment
• Simple annuity


  An annuity where the payment interval is the same as the interest period; the payment frequency is the same as the compounding frequency
• Ordinary annuity


  A type of annuity in which payments are made at the end of each payment interval
• Annuity due


  A type of annuity in which payments are made at the beginning of each payment interval
• Annuity uncertain


  An annuity payable for an indefinite duration
• Annuity certain


  An annuity in which payments begin and end at definite times
• Contingent annuity


  An annuity in which the payments extend over an indefinite length of time
• Deferred annuity


  Payment is neither made at the beginning nor the end but at some later date
• Perpetuities


  A series of periodic payments set to run infinitely
• General annuity


  An annuity where the length of the payment interval is not the same as the length of the interest compounding period
• Higher discount rate


  The greater the annuity's future value
• Higher discount rate


  Lower the present value of the annuity
• Annuitant


  The person who owns the annuity
• Annuities date back to the Roman Empire and came from the Latin word annua or annual stipends
• Stocks


  Represent shares of ownership in a company; an equity instrument carrying ownership interest
• Stockholder/Shareholder


  The one who owns shares of corporation stock