Unit 5 Review

Front

What is simple interest?

Back

Simple interest is a method of calculating the interest charge on a loan or the interest earned on an investment based on the original principal amount, the interest rate, and the time period.

Front

How do you calculate simple interest?

Back

Simple Interest = Principal × Rate × Time.

Front

What is the formula to find the total amount after interest is applied?

Back

Total Amount = Principal + Simple Interest.

Front

What is percent change?

Back

Percent change is a measure of how much a quantity has changed relative to its original amount, expressed as a percentage.

Front

How do you calculate percent change?

Back

Percent Change = ((New Value - Old Value) / Old Value) × 100.

Front

What does it mean to add sales tax to a price?

Back

Adding sales tax means increasing the original price by a certain percentage to account for tax imposed by the government.

Front

If a product costs $100 and the sales tax is 5%, what is the total cost?

Back

Total Cost = $100 + ($100 × 0.05) = $105.

Front

What is a loan?

Back

A loan is a sum of money borrowed that is expected to be paid back with interest.

Front

What is the total amount paid back on a loan?

Back

Total Amount Paid = Principal + Interest.

Front

What is the formula for calculating the total amount paid on a loan with simple interest?

Back

Total Amount Paid = Principal + (Principal × Rate × Time).