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1. Money paid for the use of money.
A
Interest
B
Accumulated value
C
Future value
2. The amount of money that is borrowed or invested.
A
Principal
B
Interest
C
Accumulated value
3. The charge for borrowing or lending, usually a percent of the principal.
A
interest rate or rate of interest
B
principal
C
accumulated value
4. Interest rate
A
annual (yearly)
B
monthly
C
quarterly
5. The time of the loan is expressed in ...
A
years
B
months
C
days
6. Eventually the borrower must pay back ...
A
the original loan amount (the principal) plus the interest
B
the principal only
C
the interest only
7. Interest rate must be changed into a ...
A
decimal
B
percent
C
fraction
8. When dealing with money, we round to the ...
A
hundredths place
B
tenths place
C
thousandths place
9. P
A
principal (amount invested or borrowed)
B
number of compounding periods in a year
C
PMT (monthly payment)
10. I
A
interest (earned or paid, $)
B
interest rate (as a decimal)
C
amount invested ($)
11. r
A
rate of interest (annual rate) in decimal number
B
rate of change
C
rate of return on investment
12. t
A
time (in years)
B
metric ton
C
temperature (°F)
13. A
A
accumulated value (future value)
B
amount borrowed
C
amount invested
14. A =
A
P + I
B
P - I
C
I - P
15. Interest paid on interest earned.
A
compound interest
B
simple interest
C
interest rate
16. The process whereby interest is credited to an existing principal amount as well as to interest already paid.
A
compounding
B
financing
C
consolidating
17. n
A
number of periods per year for compounding
B
net income
C
net income difference
18. n = 1
A
compounding 1 time a year (annually)
B
compounding 4 times a year (quarterly)
C
compounding 365 times a year (daily)
19. semi-
A
a half
B
a quarter
C
a third
20. compounding semiannually
A
compounding every half a year
B
compounding once a year
C
compounding once a day
21. n = 2
A
compounding 2 times a year (semiannually)
B
compounding 4 times a year (quarterly)
C
compounding 12 times a year (monthly)
22. n = 4
A
compounding 4 times a year (quarterly)
B
compounding 1 time a year (annually)
C
compounding 2 times a year (semiannually)
23. n = 12
A
compounding 12 times a year (monthly)
B
compounding 4 times a year (quartely)
C
compounding 1 times a year (annually)
24. n = 365
A
compounding 365 times a year (daily)
B
compounding 12 times a year (monthly)
C
compounding 4 times a year (quarterly)
25. I (interest) =
A
A - P
B
A + P
C
P - A
26. ... measures the general increase in prices of goods and services from one year to the next.
A
Inflation
B
Depreciation
C
Compounding
27. Decrease in value of an item.
A
Depreciation
B
Inflation
C
Compounding
28. Property and machinery
A
capital goods
B
consumer goods
C
non capital goods
29. V
A
The current value of an item due to depreciation
B
Future value
C
Accumulated value
30. Interest compounded annually
A
n = 1
B
n = 2
C
n = 4
31. Interest compounded semiannually
A
n = 2
B
n = 4
C
n = 365
32. Interest compounded quarterly
A
n = 4
B
n = 12
C
n = 365
33. Interest compounded monthly
A
n = 12
B
n = 2
C
n = 1
34. Interest compounded daily
A
n = 365
B
n = 2
C
n = 12
35. Interest compounded continously
A
B
C
36. semiannually
A
every half a year
B
every year
C
every two years