BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is the amount of money borrowed or invested on the origin date.
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It is the interest computed on the principal and also on the accumulated past interests
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It refers to the person (or institution) who owes the money or avails of the fund from the lender.
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It refers to the person (or institution) who invests the money or makes the funds available.
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Detailed explanation-1: -A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities-such as bonds-the debtor is referred to as an issuer.
Detailed explanation-2: -Maturity value/Future value (F)-amount after t years; that the lender receives from the borrower on the maturity date.
Detailed explanation-3: -A lender is an individual, a public or private group, or a financial institution that makes funds available to a person or business with the expectation that the funds will be repaid. Repayment includes the payment of any interest or fees.
Detailed explanation-4: -Debtor. While the creditor is the entity that extends credit, a debtor is the legal party that accepts the credit or loan, owes the debt, and agrees to its repayment.