The simple interest formula is I=Prt. The P represents the principal. The principal is ___________________.

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

Emilio borrows $1200 from a bank with 8.5% simple interest per year. How much will he have to pay back total in 2 years?

Question #15

What is another term for the original amount?

A.) payment

B.) per annum

C.) percent

D.) principal

Question #16

You want a high interest rate when you borrow money.

A.) true

B.) false

Question #17

You want a high interest rate when you invest money.

A.) true

B.) false

What are ways you can purchase items?

A percentage of a borrowed sum of money that must be paid in addition to the repayment of the loan itself

A sum of money given for a designated period of time which must be repaid with interest

Money owed to someone

Money set aside for later use or in case of emergencies

A plan for spending and saving a person's income

A loan of money

An individual, bank, or company who loans money

Financial obligations, such as bills (utilities, car payments, house payments/rent, etc.)

A persons work related financial earnings

The lowest wage/salary permitted by law to be paid to an employee; in the U.S. $7.25 an hour

What two things does a budget compare?