Interest Flashcard

Front

________ is the charge for the privilege of borrowing money.

Back

Interest

Front

A ________ is when something is borrowed, especially an amount of money, and is expected to be paid back with interest.

Back

Loan

Front

A ________ is the original amount of money in an investment or loan.

Back

Principal

Front

In the simple interest equation, I = P × r × t, which of the following options is NOT a part of the equation? Interest, Time, Tax, Interest Rate, Principal

Back

Tax

Front

A simple interest loan is taken for $5000 at 4% interest for 3 years. What will the balance of the loan be after the three years?

Back

$5,600

Front

Rick accepts a simple interest loan for $12,500 at 4.5% interest for 30 months. What would the balance of the loan be after the 30 months?

Back

$13,906.25

Front

You accept a loan from the government to go college. Do you hope that your loan has a higher interest rate, or a lower interest rate? Why?

Back

Lower. I will have to pay back less money in interest.

Front

Brenda invests $4,848 in a savings account with a fixed annual interest rate of 5% compounded 2 times per year. What will the account balance be after 6 years?

Back

$6,520.02

Front

Jasmine invests $2,658 in a retirement account with a fixed annual interest rate of 9% compounded monthly. What will the account balance be after 15 years?

Back

$10,201.52

Front

Maria invests $6,154 in a savings account with a fixed annual interest rate of 8% compounded quarterly. What will the account balance be after 10 years?

Back

$13,588.28