Personal Finance Terminology Quiz 2 3 Interest is calculated once a year. Interest is calculated four times a year (every three months). Interest is calculated three hundred and sixty-five times a year (every day). An amount subtracted from the original value The value of the initial amount of the investment. The money earned from an investment or paid on a loan. 1. Interest 2. Simple interest > 3. Compound interest 4. Compounded Annually 5. Compounded Semi-annually 6. Compounded Quarterly 7. Compounded Monthly > Interest is calculated two times a year (every six months). Interest is calculated fifty- two times a year (every week). Interest is calculated twelve times a year (every month). The amount that the principal will be worth at a specified time in the future. The money earned from an investment or paid on a loan that is based on the original value of the investment or loan. The length of time between interest calculations. 8. Compounded Weekly Compounded Bi-weekly 10. Compounded Daily 11. Annual Interest Rate 12. Compounding Period Rate 13. Compounding frequency year. 14. Compounding period Year 15. Creditor 16. Debtor The interest rate for the compounding period. Interest is calculated twenty-six times a year (every other week). 17. Balance 18. Present value The lender of the money. 19. Future value 20. Term/Period 21. Principal 22. Discount The amount of money in an investment or loan at a specific period of time. The borrower of the money. The money earned from an investment or paid on a loan that is based on the current value which includes the principal and the accumulated interest from previous periods. 23. Annum The lender of the money. 17. ruluic valuc