Basic Business Math

Who is referred to as the lender or creditor?

• A person who invests money

• A person who owes money

• A person who receives funds

• A person who manages funds

What is the term used for the date on which money is received by the borrower?

• Repayment date

• Maturity date

• Loan date

• Principal date

What does the term 'maturity date' refer to?

• The date when interest is calculated

• The date when the loan is initiated

• The date when the borrower applies for a loan

• The date when the loan is fully repaid

What is the principal amount?

• The total amount paid over time

• The amount of money borrowed or invested

• The interest charged on a loan

• The total value of an investment

What does the term 'rate' refer to in finance?

• The duration of the loan

• The annual percentage charged by the lender

• The principal amount

• The total amount of interest paid

What is simple interest?

• Interest computed on the principal only

• Interest that is paid monthly

• Interest calculated on the total amount

• Interest that compounds over time

How is compound interest calculated?

• On the principal only

• On the principal and accumulated past interests

• On the total amount borrowed

• On the repayment date

What does 'future value' refer to?

• The amount owed at the origin date

• The amount received by the lender on maturity date

• The total interest paid over time

• The principal amount after repayment

What is the term for the length of time the money is borrowed?

• Term

• Maturity

• Principal

• Rate

What is the role of a borrower?

• To manage the loan process

• To owe money to the lender

• To invest funds

• To lend money to others