General Mathematics - Simple and Compound Interest

___________________ is the interest earned when a loan or investment is repaid in a lumpsum.

Variable P in simple interest formula when you are the creditor stands for?

• Original Amount borrowed

• Original Amount invested

• Maturity Amount Borrowed

• Maturity Amount invested

Rate of interest must be converted into ________ before substituting to the

formula of finding the interest.

Which of the following describes rate (r)?

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

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

• It is charged by the lender, or rate of increase of the investment

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

All of the following are used to find simple interest, EXCEPT?

• principal

• rate of interest

• time

• future value

It is computed on the original principal, the interest due after a certain time.

• Simple interest

• Principal

• Compound interest

• Final Amount

It is the term of period of the loan.

• Rate

• Interest

• Principal

• Time

It is the cost of using money expressed as percentage of the principal for a given period of time.

• Principal

• Time

• Rate

• Interest

It is the amount borrowed/lent/loan/invested.

• Principal

• Time

• Rate

• Interest

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

• revenue

• real value

• rate of interest

• repaid