Match each word or word phrase with its definition. Write the letter only in the blank. All words are used exactly one time. A.) annuity account F) home equity K.) effective rate of interest B.) amortization G.) simple interest L.) sinking fund C.) annuitization phase H.) balloon payment M.) accumulated amount D.) conversion period 1.) ARM-loan N.) annuity E.) accumulation phase J.) term O.) compound interest 1. Interval of time between successive interest calculations. 2. The period during which you are making withdrawals frm your annuity account. 3. A home loan in which the interest rate is changed periodically based on a financial index. 4. The annual rate of interest that, when compounded annually, will yield the same accumulated amount as the nominal rate compounded m times a year (over the same term). It is also called the annual percentage yield (APY). 5. The difference between the home's value and the outstanding balance on the property. 6. An account earning interest into which you make periodic deposits or from which you make periodic withdrawals. 7. The sequence of deposits or withdrawals. 8. The sum of the principal and interest after t years. 8. The sum of the principal and interest after t years. 9. The time period of an investment. 10. An account that is set up for a specific purpose at some future date. 11. Interest that is compounded on the original principal only. 12. Interest that is periodically added to the principal and therefore earns interest at the same rate (i.e. you earn interest on both the principal and the previous interest earned). 13. A repayment of the outstanding principal, made at the end of a loan period. 14. The period during which you are contributing to your annuity account, during which the value of the account increases. 15. The process of paying off a loan