Interest Quiz

________ is the charge for the privilege of borrowing money.

• Loan
• Principal
• Interest
• Discount

A ________ is when something is borrowed, especially an amount of money, and is expected to be paid back with interest.

• Loan
• Principal
• Discount
• Tax

A ________ is the original amount of money in an investment or loan.

• Loan
• Principal
• Tax
• Interest

In the simple interest equation, I = P × r × t , which of the following options is NOT a part of the equation?

• Interest
• Time
• Tax
• Interest Rate
• Principal

A simple interest loan is taken for $5000 at 4% interest for 3 years. What will the balance of the loan be after the three years?

• $4,600
• $5,000
• $5,600
• $6,200
• $5,060

Rick accepts a simple interest loan for $12,500 at 4.5% interest for 30 months. What would the balance of the loan be after the 30 months?

• $29,375.00
• $16,875.00
• $13,906.25
• $15,604.50
• $1,406.25

You accept a loan from the government to go college. Do you hope that your loan has a higher interest rate, or a lower interest rate? Why?

• Higher. I will have to pay back more money in interest.
• Higher. I will have to back less money in interest.
• Lower. I will have to pay back more money in interest.
• Lower. I will have to pay back less money in interest.

Brenda invests $4,848 in a savings account with a fixed annual interest rate of 5% compounded 2 times per year. What will the account balance be after 6 years?

Jasmine invests $2,658 in a retirement account with a fixed annual interest rate of 9% compounded monthly. What will the account balance be after 15 years

Maria invests $6,154 in a savings account with a fixed annual interest rate of 8%compounded quarterly. What will the account balance be after 10 years?