Day 119: Simple Interest Vocabulary

Front

What is the term for 'the amount of money you borrow'?

Back

Principle

Front

What is the term for 'the amount of money added to your principle'?

Back

Interest

Front

What describes the PERCENTAGE that you are being charged to take a loan?

Back

Rate

Front

True or False: Your CREDIT SCORE affects your interest rates and ability to get a loan.

Back

True

Front

Convert 7% to a decimal.

Back

.07

Front

What is the formula for calculating Simple Interest?

Back

Simple Interest = Principle × Rate × Time

Front

If you borrow $1000 at an interest rate of 5% for 3 years, what is the total interest paid?

Back

$150

Front

What does 'Time' refer to in the context of Simple Interest?

Back

The duration for which the money is borrowed, usually expressed in years.

Front

What is the difference between 'Principal' and 'Interest'?

Back

Principal is the original amount borrowed, while Interest is the cost of borrowing that amount.

Front

How do you convert a percentage to a decimal?

Back

Divide the percentage by 100.