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Simple and Compound Interest

Simple and Compound Interest
18問 • 2年前
  • Gwenneth Dalawampu
  • 通報

    問題一覧

  • 1

    What interest remains constant throughout the investment term?

    simple

  • 2

    It is an interest computed based on the principal amount.

    simple

  • 3

    What is the difference between simple and compound interest?

    Simple interest is computed based on the principal while compound interest is computed based on the principal and also on the accumulated past interests.

  • 4

    If you would like to invest money, which bank offer would you prefer if you do not plan to withdraw your money in 2 years?

    5% simple interest per annum

  • 5

    Which of the following statement is true about the borrower or debtor?

    It refers to the person (or institution) who owes the money or avails of the fund from the lender.

  • 6

    It is an amount after t years that the lender receives from the borrower on the maturity date.

    maturity value

  • 7

    interest that is computed on the principal.

    Simple Interest

  • 8

    person (or institution) who invests the money or makes the funds available

    Lender or creditor

  • 9

    person (or institution) who owes the money or avails of the funds from the lender

    Borrower or debtor

  • 10

    date on which money is received by the borrower

    Origin or loan date date on which money is received by the borrower

  • 11

    date on which the money borrowed or loan is to be completely repaid

    Repayment date or maturity date

  • 12

    amount of time in years the money is borrowed or invested; length of time between the origin and maturity dates

    Time or term (t)

  • 13

    annual rate, usually in percent, charged by the lender, or rate of increase of the investment

    rate

  • 14

    amount of money borrowed or invested on the origin date

    principal

  • 15

    amount paid or earned for the use of money

    Interest (I)

  • 16

    amount after t years that the lender receives from the borrower on the maturity date

    Maturity value or future value (F)

  • 17

    computed from the principal and accumulated past interest

    Compound Interest

  • 18

    remain constant during the investment term

    Interest

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    問題一覧

  • 1

    What interest remains constant throughout the investment term?

    simple

  • 2

    It is an interest computed based on the principal amount.

    simple

  • 3

    What is the difference between simple and compound interest?

    Simple interest is computed based on the principal while compound interest is computed based on the principal and also on the accumulated past interests.

  • 4

    If you would like to invest money, which bank offer would you prefer if you do not plan to withdraw your money in 2 years?

    5% simple interest per annum

  • 5

    Which of the following statement is true about the borrower or debtor?

    It refers to the person (or institution) who owes the money or avails of the fund from the lender.

  • 6

    It is an amount after t years that the lender receives from the borrower on the maturity date.

    maturity value

  • 7

    interest that is computed on the principal.

    Simple Interest

  • 8

    person (or institution) who invests the money or makes the funds available

    Lender or creditor

  • 9

    person (or institution) who owes the money or avails of the funds from the lender

    Borrower or debtor

  • 10

    date on which money is received by the borrower

    Origin or loan date date on which money is received by the borrower

  • 11

    date on which the money borrowed or loan is to be completely repaid

    Repayment date or maturity date

  • 12

    amount of time in years the money is borrowed or invested; length of time between the origin and maturity dates

    Time or term (t)

  • 13

    annual rate, usually in percent, charged by the lender, or rate of increase of the investment

    rate

  • 14

    amount of money borrowed or invested on the origin date

    principal

  • 15

    amount paid or earned for the use of money

    Interest (I)

  • 16

    amount after t years that the lender receives from the borrower on the maturity date

    Maturity value or future value (F)

  • 17

    computed from the principal and accumulated past interest

    Compound Interest

  • 18

    remain constant during the investment term

    Interest