QL: Fall Semester Test 2024-25

Front

What is a student loan?

Back

A loan for college expenses.

Front

What is compound interest?

Back

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

Front

Calculate the compound interest on a loan of $1500 at an annual interest rate of 3% compounded annually for 2 years.

Back

$91.35

Front

What is simple interest?

Back

Interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Front

A student borrows $1000 at a simple interest rate of 5% per annum. How much will the student owe in total after 3 years?

Back

$1150

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal × Rate × Time.

Front

You borrowed $59,000 for 2 years at 11% which was compounded annually. What total will you pay back?

Back

$72,693.90

Front

What is the formula for calculating compound interest?

Back

Compound Interest = Principal × (1 + Rate)^Time - Principal.

Front

9 months is how many years?

Back

.75

Front

What does APR stand for in finance?

Back

Annual Percentage Rate.