GEN MATH - Long Quiz #1 (Finals)

Type of interest based on a 365-day year.

• annual interest rate

• stated rate method

• exact interest

• ordinary interest

Type of interest based on a 360-day year.

• annual interest rate

• stated rate method

• exact interest

• ordinary interest

Steve deposited $5,000 in a savings account that pays 4% interest compounded annually. Which equation could be used to find the value of the account after 3 years?

• A=5,000(1+4)^3

• A=5,000(1+0.04)^3

• A=5,000(1+0.04)x3

• a.      A=5,000(0.04)^3

Quarterly means how many times a year?

• 2

• 4

• 52

• 12

Convert 18 months to years.

• 18 years

• 1.8 years

• 3 years

• 1.5 years

Write 0.37 as a percent.

• 37%

• .37%

• 3.7%

• 0.37%

What does the " I " in the interest formula stand for?

• Interest rate

• Interest rate per hour

• Interest rate per time

• Interest

What does " i " in the interest formula stand for?

• Interest rate

• Interest rate per hour

• Interest rate per time

• Interest

In the compound interest formula A=P(1+rt) what does the A stand for?

• the amount of interest

• the initial value

• the total amount

• the time

In the compound interest formula A=P(1+r)^t what does the P stand for?

• the amount of interest

• the initial value

• the total amount

• the time