2. 9.1Introduction
-Is a financial arrangement whereby a lump-
sum is incurred at compound interest now, such
as loan and is liquidated or paid off or by a
series of equal periodic payment for specified
amount of time(e.g. monthly, quarterly,
semiannually, annually, etc.)
3. -Is a repayment of a loan by periodic
payments, with the possible exception
of the last payment, are equal in size.
These payments are often described as
combined payments of principal and
interest.
4. -Is an interest-earning account into which
periodic payments are made for the
purpose of accumulating a specific amount
of money by a certain date or for the
purpose of saving for a future obligation.
