MM 109 Prelim

________ is the amount of money borrowed or invested.

• Interest

• Principal

• Principle

• Rate

__________ is the percent of the principal paid as interest per time period.

• Principal

• Interest

• Rate

• Principle

_________ interest applies when interest for each year is based on the amount of the loan or investment.

• Compound

• Simple

• Linear

• Quadratic

_________ value is the amount of the loan plus the interest.

• Loan

• Maturity

• Initial

• Opening

How many days are in a year for exact interest?

• 360

• 361

• 365

• 366

Which months have only 30 days?

• August, June, September, November

• May, April, June, November

• April, June, September, November

• February, June, September, November

Convert 7 months to a decimal part of a year.

• 0.714

• 0.583

• 1.714

• 0.0583

Find the maturity value of a P7,465 loan at 6 1/8% for three years.

• P8,836.69

• P1,371.69

• P457.23

• P7,922.23

Which is the correct formula for time using the simple interest formula?

• T = I × P × t

• t = I /(P × r)

• t = P/(I × r)

• t = r/(I × P)

The price paid for using money is called ____________.

• principal

• rate

• interest

• loan