LET'S EXPLORE!

What is Simple Interest?

• Interest that is paid only at the end of the term

• Interest computed on the total amount including past interest

• Interest that varies over time

• Interest computed on the principal only

Who is referred to as a lender?

• A person who borrows money

• A person who pays interest

• A person who invests money or makes funds available

• A person who collects debts

What does the term 'Principal' refer to?

• The date when the loan is repaid

• The annual interest rate

• The amount of money borrowed or invested

• The total amount of interest paid

What is the formula for Simple Interest?

• I = Prt

• I = P(1 + r/n)^(nt)

• I = P + r

• I = F - P

What is the Maturity Value?

• The amount after t years that the lender receives

• The initial amount borrowed

• The annual interest rate

• The interest paid over the term

What is Compound Interest?

• Interest that is paid only at the beginning

• Interest that remains constant throughout the term

• Interest computed on the principal and accumulated past interest

• Interest computed only on the principal

What does 't' represent in the interest formulas?

• The annual interest rate

• The principal amount

• The time in years the money is borrowed or invested

• The total amount of interest

What is the formula for Compound Interest?

• Ic = P + I

• Ic = F - P

• Ic = Prt

• Ic = P(1 + r/n)^(nt)

What does the 'Rate' (r) refer to?

• The time period of the loan

• The total amount of money borrowed

• The annual rate charged by the lender

• The maturity value

What is the repayment date?

• The date when the lender receives the principal

• The date when interest is calculated

• The date on which the money borrowed is to be completely repaid

• The date when the loan is taken