Financial Modelling

3. When the value of an item decreases as a percentage of its value after each time period.
4. A loan that attracts compound interest but is reduced in value by making regular payments.
7. When interest is added to a loan or investment and then contributes to earning more interest.
9. The value of an item at which it is ‘written off’ or is considered no longer useful or usable.
11. An investment that earns compound interest and from which regular payments are deposited or withdrawn.
13. The amount by which the value of an item decreases after a period of time.
14. A loan where the regular payments made are equal in value to the interest charged.

1. An annuity where the regular payments or withdrawals are the same as the interest earned.
2. A constant amount that is subtracted from the value of an item at regular time intervals.
5. The real interest rate when the effects of compounding is taken into account.
6. The advertised interest rate.
8. A fixed amount of interest that is paid at regular time intervals.
10. The initial amount that is invested or borrowed.
12. The value of a loan or investment at any time during the loan or investment period.