Simple and compound interest

Front

This refers to the accumulated amount obtained by adding the principal and the compound interest.

Back

Compound amount

Front

Interest rate per conversion period

Back

Periodic rate

Front

This refers to the amount paid or earned for the use of money.

Back

Interest

Front

What is the formula in computing the simple interest on a given financial transaction?

Back

Front

30 months is equivalent to ______.

Back

2.5 years

Front

Date on which the money borrowed or loaned is to be completely repaid.

Back

Maturity date

Front

Principal in the simple interest formula I=Prt

Back

the amount of money borrowed or deposited

Front

What does the t represent in the simple interest formula I=Prt?

Back

Time

Front

How to convert time in months to years for simple interest calculation?

Back

Divide the months by 12.

Front

The rate is given as a percent (%). Before using it in the simple interest formula, you must first convert it to a ______. Options: fraction, decimal, ratio, dollar amount.

Back

decimal