1P Economic Engineering

The interest rate which reflects the total amount of interest earned on an investment in one year.

• Interest
• Interest rate
• Effective interest rate
• Nominal interest rate

The fee lenders charge to borrowers for the temporary use of money.

• Interest
• Interest rate
• Effective interest rate
• Nominal interest rate

The stated annual interest rate.

• Interest
• Interest rate
• Effective interest rate
• Nominal interest rate

The percentage charged or earned for the use of money per year.

• Interest
• Interest rate
• Effective interest rate
• Nominal interest rate

A series of equal payments at regular intervals.

• Annum
• Annuity
• Annual interest rate

Referring to one year.

• Annum
• Annuity
• Annual interest rate

The interest rate over a one year period or interest rate per annum.

• Annum
• Annuity
• Annual interest rate

A six month investment will earn 5.25%. How much would you need to invest if you want to earn $100 in interest?

Mark had $240 in the bank for the month of April. At the end of the month he had earned $0.90 in interest. What interest rate was the bank paying?

Carl invested $500 paying 6%. How long will it take her to earn $250 in interest?