Interest Formula

The n in the compound interest formula stands for

• interest rate

• initial amount

• The number of times compounded per year

• Number of years compounded

If your money is compounded quarterly, what value do you use for n?

• 6

• .25

• 25

• 4

The rate is given as a percent (%).  Before using it in the simple interest formula, you must first convert it to a______.

• fraction

• decimal

• ratio

• dollar amount

• The future value including the principal amount and the simple interest

• The simple interest you will receive

• The future value including the principal amount and the compound interest

• The compound interest you will receive

• The number of times compounded per year

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

• Principal

• Interest

• rate

• time

• total amount

• principal

• interest rate (decimal)

• time (years)

• initial amount

• rate of interest

• number of times compounded in a month

• time (months)

• interest rate (percentage)

• number of times compounded in a year

• A

• B

• C

• D

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

• Important

• Interest

• Internet

• Igloo

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

• Principal

• Interest

• rate

• time

In simple and compound interest, what does "t" mean?

• Time, will be expressed in years

• Time, will be expressed in months

• Rate, in decimal form

• Rate, in percentage