What I Know (Simple and Compound Interest)

What interest remains constant throughout the investment term?

• Simple

• Compound

• Annuity Due

• Ordinary annuity

Tags

CCSS.HSF-LE.A.1C

It is an interest computed based on the principal amount.

• Simple

• Compound

• Annuity Due

• Ordinary annuity

Tags

CCSS.HSF-LE.A.1C

What is the difference between simple and compound interest?

• Simple yields higher interest than compound interest

• Simple interest has a shorter term than compound interest

• Simple interest is always better than compound interest

• Simple interest is computed based on the principal while compound interest is computed based on the principal and also on the accumulated past interests

Tags

CCSS.7.RP.A.3

If you would like to invest money, which bank offer would you prefer if you do not plan to withdraw your money in 2 years?

• 5% simple interest per annum

• 4% compounded interest per annum

• 3% compounded interest semi-annually

• 2% compounded interest quarterly

Which of the following statement is true about the borrower or debtor?

• It is the amount of money borrowed or invested on the origin date.

• It is the interest computed on the principal and also on the accumulated past interests

• It refers to the person (or institution) who owes the money or avails of the fund from the lender.

• It refers to the person (or institution) who invests the money or makes the funds available.

Tags

CCSS.6.NS.C.7C

Which of the following statements is/are true?

I. Compound interest of a loan favors the borrower.

II. Simple interest remains constant throughout the investment term.

III. In compound interest, the interest from the previous year also earns interest.

• I only

• I and II

• II and III

• I and III

Tags

CCSS.8.F.A.3

Which of the following formula can be used to solve for the simple interest?                                      

• I = Prt

• A= P(1 + rt)

• 
  

   $SI\ =\ \frac{\Pr t}{100}$  

• All of the above

Tags

CCSS.7.RP.A.3

It is an amount after t years that the lender receives from the borrower on the maturity date.

• loan date

• maturity value

• maturity date

• term

Tags

CCSS.HSA.SSE.B.4

Which of the following describes time or term?

• It is the date on which money is received by the borrower.

• It is the amount of time in years the money is borrowed or invested; length of time between the origin and maturity dates

• It is the date of which the money borrowed or loan is to be completely repaid

• It is the amount paid or learned for the use of money.

Tags

CCSS.7.RP.A.3

In the formula, I= Prt, what is r?

• revenue

• real value

• repaid

• rate of interest

Tags

CCSS.6.EE.B.7