DENX

1. By: DENZEL ANN REDOBLADO

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.

5. 9.2 BASIC CONCEPTS
-Is the length of time over which a loan is
scheduled to be fully repaid. After the two
p-arties (lender and borrower) agrees on
the amount of the loan, the rate of
interest and the repayment frequency.

6. -Is a list of several periods of payments
showing the principal and the interest
parts of those payments and the
outstanding balance (or principal) after
each payment is made.

7. -Is a systematic means for a business or other
organization to accumulate funds for a future
project, or planned capital expenditure like
the replacement of equipment, expansion of
production facilities, or an acquisition.

8.  OPBI- Outstanding Principal at Beginning of
Interval
 POP- Previous Outstanding Principal
 PRP- Previous Repayment of Principal
 IDEI- Interest Due at End of Interval
 RII- Rate of Interest per Interval
 TPEI- Total Payment at End of Interval
 RPEI- Repayment of Principal at End of
Interval

9.  FBI- Fund at the Beginning of Interval
 PBFEI- Previous Balance in Fund at End of
Interval
 IRFEI- Interest Received of Fund at the End of
Interval
 RII- Rate of Interest per Interval
 PFEI- Payment to Fund at End of Interval
 FEI- Fund at End of Interval

10.  j- Nominal interest rate
 m- Number of conversion per year
 t- Time period (term) of the loan or
investment
 n- Number of payments in the annuity
 R- Size of each annuity payment
 i- Interest rate per compounding period
 Sn- Future value of an n-payment ordinary
simple annuity
 An- Present value of an n-payment ordinary
simple annuity