Business Math (2nd 9 weeks Test)

Front

The simple interest formula is I=Prt. What does the t represent?

Back

Time

Front

This is the cost of using some other person's or bank's money.

Back

Interest

Front

Which vocabulary term below, describes how much money is added to a loan or a savings account? Options: Interest accrued/earned, Interest rate, Principal, Percent Equation

Back

Interest accrued/earned

Front

What vocabulary word describes the $5,000 loan Sarah got for her kitchen renovation at an interest rate of 5.5%?

Back

Principal

Front

Which vocabulary term describes the percentage in a simple interest percent equation problem?

Back

Interest Rate

Front

What does P stand for in I = Prt ?

Back

principal

Front

What is important about how time is calculated in I= Prt?

Back

it must be in years

Front

The principle is ___________________.

Back

the amount of money borrowed or deposited

Front

To earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.

Back

compound ; highest

Front

I = Prt where r represents the rate. Rates must be converted into ____ before multiplying.

Back

decimals