Final Term_Quiz#1_GenMath11

Which interest is computed on the principal and then added to it?

• simple

• annuity due

• compound

• ordinary annuity

The simple interest formula is I = Prt. What does the t represent?

• Principal

• Time

• Interest

• Percent rate

All of the following are used to find simple interest, EXCEPT?

• principal

• time

• rate of interest

• future value

It is the amount after t years that the lender will receive from the borrower.

• future Value

• interest

• present Value

• principal

Which of the following describes rate (r)?

• It is the amount of money borrowed or invested on the origin date.

• It is the amount paid or earned for the use of money.

• It is charged by the lender, or rate of increase of the investment

• It is computed on the principal and also on the accumulated past interests.

Rate of interest must be converted into ________ before substituting to the formula of finding the interest.

• fractions

• decimals

• mixed numbers

• percentage

The principal in the formula I = Prt is ___________________.

• the amount of money borrowed or deposited

• the percent interest for his year

• the amount taxed

• the amount the bank owes you for being a customer at their bank

The interest from the previous year also earns interest, which of the following describes the statement?

• simple

• rate

• compound

• time

Variable P in simple interest formula when you are the creditor stands for?

• Original Amount borrowed

• Maturity Amount Borrowed

• Original Amount invested

• Maturity Amount invested

The following statements are true EXCEPT ________.

• The amount invested to a compounded interest yields to greater maturity value than to a simple interest.

• The amount borrowed from a simple interest yield to a smaller maturity value than a compound interest

• The simple interest yields interest only from initial principal amount.

• The interest in a compound account yield interest only from initial principal amount.