Finance

 Equated Monthly Installment (EMI)

• It is a fixed payment amount made by a borrower to a lender at a specific date each calendar month.
• They are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.
• The chief benefit of an EMI is to make your personal budgeting process easier.
• The EMI can be calculated using either the flat-rate method or the reducing-balance method.
• The EMI flat-rate formula is calculated by adding together the principal loan amount and the interest in the principal and dividing the result by the number of periods multiplied by the number of months.
• The EMI reducing-balance method is calculated by: 
  (P x I) x ((1 + r)n)/ (t x ((1 + r)n)- 1) where, I = annual interest rate, P = Principal amount, r = periodic monthly interest, n = number of monthly payments, t = number of months in a year.

Quarter

• A quarter is a three-month period on a company's financial calendar that acts as a basis for periodic financial reports and the paying of dividends.
• It is typically expressed as - "Q1" for the first quarter, "Q2" for the second quarter, and so forth.
• They are a crucial piece of information for investors and analysts.
• In India, Q1 = April-June, Q2 = July-September, Q3 = October-December, Q4 = January-March.

Keywords

• Escrow - It is a legal concept describing a financial instrument whereby an asset or money is held by a third party on behalf of two other parties that are in the process of completing a transaction.
• Syndicate - It is a temporary alliance of businesses that joins together to manage a large transaction, which would be difficult to effect individually. It makes it easy for companies to pool their resources and share risks.
• Trade Deficit - It occurs when a country's imports exceed its exports during a given time period.
• Corporate Tax - It is the tax on the profits of a corporation. They are based on operating earnings after expenses have been deducted.
• Carbon Credit - It is a permit that allows the company that holds it to emit a certain amount of CO2 or other greenhouse gases. One credit permits the emission of a mass of one ton.
• Tax Haven - It is generally an offshore country that offers foreign individuals and businesses little or no tax liability in a politically and economically static environment.
• Pure Risk - It is a type of risk that cannot be controlled and has two outcomes: complete loss or no loss at all. There is no opportunity for gain or profit.
• GDP - It is the value of a nation's finished domestic goods and services during a specific time period.
• Quota - It is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period.
• Tariff - It is a tax imposed by one country on the goods and services imported from another country.
• Inflation - It is the decline of the purchasing power of a given currency over time.
• Price Level - It is the average of current prices across the entire spectrum of goods and services produced in an economy.