Simple and Compound Interest - Vocabulary Review

When dealing with money and finance, the term ​ (a)   is defined as a charge for borrowed money generally a percentage of the amount borrowed.

• interest
• time
• principal
• annual percentage rate (APR)

​ (a)   is the amount of money loaned or invested.

• Principal
• Interest
• Rate
• Future value

​ (a)   is the total amount that is paid back when a loan is fully paid off.​ ​

• Paid amount
• Payoff amount
• Interest
• Future value

​ (a)   is a portion of the selling price that is paid toward buying an item, like an automobile or a house.

• Down payment
• Installment
• Interest rate
• Payoff amount

​ (a)   ​ (b)   ​ (c)   is the percent at which interest is paid for one year on a loan or investment.

• Annual
• Percentage
• Rate
• Monthly
• Compound
• Principal
• Interest
• Term

​ (a)   ​ (b)   is the total amount that is earned on an investment.

• Future
• value
• Present
• principal
• Interest
• rate

​ (a)   ​ (b)   the actual amount that you have in an account that has paid interest.

• Future
• value
• Present
• principal
• Interest
• rate

• Simple Interest Formula

• Compound Interest Formula

​ (a)   is the loss of value in an object.

• Depreciation
• Deterioration
• Obsolescence
• Appreciation

When the simple interest formula is used to calculate depreciation, it is called ​ (a)   .

• straight-line depreciation
• proportional depreciation
• zigzag depreciation