Simple and compound interest

Front

What is the accumulated amount obtained by adding the principal and the compound interest?

Back

Compound amount

Front

What is the total number of conversion periods when a certain amount is borrowed at 10% compounded monthly for 5 years?

Back

60

Front

What is the interest rate per conversion period if ₱25,900.00 was invested at 3.5% compounded annually for 4 years and 6 months?

Back

0.035

Front

What does the term 'interest' refer to?

Back

The amount paid or earned for the use of money.

Front

What does the 'I' in the interest formula stand for?

Back

Interest

Front

Define simple interest.

Back

Interest calculated only on the principal amount.

Front

Define compound interest.

Back

Interest calculated on the initial principal and also on the accumulated interest from previous periods.

Front

What is the formula for calculating simple interest?

Back

I = PRT (Interest = Principal x Rate x Time)

Front

What is the formula for calculating compound interest?

Back

A = P(1 + r/n)^(nt) (A = amount, P = principal, r = annual interest rate, n = number of times interest applied per time period, t = number of time periods)

Front

What is the principal in the context of interest?

Back

The initial amount of money invested or borrowed.