Terminology


No Term Definition
1 Interest The fees for borrowing money, or the money earned for investing in an investment
2 Principal The total amount at funding or investing, excluding the amount of interest charged
3 Rate The percentage of interest a borrower pays for the use of money
4 Time The period (in terms of years) to pay off the loan
5 Maturity value The total amount to be paid at the end of the loan period, or total amount received from an investment
6 Promissory note A written promise to pay a certain sum of money at a specific future date