Quiz # 1 (Final Term)

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

It is the interest earned not only on the original principal but also on all interest earned previously.

The number of compounding periods in quarterly compounding frequency.

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

The interest is paid on the original principal only.

It is defined as the cost of borrowing money.

The formula in calculating the simple interest is:

It is the initial amount you borrow or deposit.

The number of years the amount is deposited or borrowed for.

It is calculated on the principal amount and also on the accumulated interest of previous periods, and can thus be regarded as interest on interest.