Checking, APR, & APY

The rate is given as a percent (%). Before using it in the interest formula, you must first convert it to a______.

• fraction

• decimal

• ratio

• dollar amount

Interest can be defined as:

• a charge for lending money
• the amount owed for borrowing money
• the amount added into your savings account when opening a bank account
• a charge for convenience of accessing money in your bank

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

• compound; lowest
• compound; highest
• simple; lowest
• simple; highest

Write the decimal as a percent. 
0.37

• 37%
• 3.7%
• .37%

Write the percent as a decimal. 
4.3%

• 4.3
• .43
• .043
• 4300

What type of interest is most desired for a savings account?

• compound interest

• simple interest

• variable interest

• combination interest

What type of interest is best if you have a loan?

• simple interest

• compound interest

• balloon interest

APR stands for

• annual profit rate

• annual percentage rate

• annual participation rate

• annuity profit range

Tags

CCSS.7.RP.A.3

Earning interest on interest is called

• Extra interest

• Inflation interest

• Simple interest

• Compound interest

This is the term used when money is being taken out, or subtracted, from an account

• debit
• credit
• balance
• charge