Interest Vocab Pop Quiz

What is the difference between simple interest and compound interest?

• Simple interest is calculated on a daily basis, while compound interest is calculated on a yearly basis.

• Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal amount and the accumulated interest.

• Simple interest is always higher than compound interest.

• Simple interest is only applicable to short-term loans, while compound interest is applicable to long-term loans.

Tags

CCSS.7.RP.A.3

What is the difference between the principal amount and the total amount?

• The principal amount is the final balance, A + I

• The total amount is the final balance, P + I

Tags

CCSS.7.RP.A.3

The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________. 

• the amount of money borrowed or deposited
• the amount taxed
• the percent interest for this year
• the amount the bank owes you for being a customer at their bank

Tags

CCSS.7.RP.A.3

The simple interest formula is I=Prt.  The I represents the interest.  The interest is ___________________. 

• the amount of money borrowed or deposited
• the amount taxed
• the percent interest for this year
• the amount you owe on a loan or the amount you earn

Tags

CCSS.7.RP.A.3

If you are calculating the simple interest and you are given the time in months.  How can you find the time in years?

• divide 12 by the months
• multiply 12 times the months
• divide the months by 12
• change the months to a decimal

Tags

CCSS.7.RP.A.3

I = Prt where r represents the rate.  Rates must be converted into ____ before multiplying.

• fractions
• mixed numbers
• decimals
• integers

Tags

CCSS.7.RP.A.3

Emilio borrows $1200 from a bank with 8% simple interest per year.  The amount Emilio borrows is the _____________.

• interest

• principal

• rate

• total

Tags

CCSS.7.RP.A.3

Marco had to borrow $700 for medical expenses. After 8 years, he had paid $868. If he had used a simple interest rate of 3%. What does $168 represent?

• Principal

• Total (A)

• Interest

• Rate

Tags

CCSS.7.RP.A.3