15 Questions
What is simple interest?
Interest that is computed on the principal and remains constant throughout the term.
Who is a lender or creditor?
A person or institution who invests the money or makes the funds available.
Who is a borrower or debtor?
A person or institution who owes the money or avails of the funds from the lender.
What is the origin or loan date?
The date on which money is received by the borrower.
What is the repayment date or maturity date?
The date on which the money borrowed or loan is to be completely repaid.
What is time or term (t)?
The amount of time in years the money is borrowed or invested; the length of time between the origin and maturity dates.
What is principal (P)?
The amount of money borrowed or invested on the origin date.
What is rate (r)?
The annual rate, usually in percent, charged by the lender or the rate of increase of the investment.
What is interest (I)?
The amount paid or earned for the use of money.
What is maturity value or future value (F)?
The amount after t years that the lender receives from the borrower on the maturity date.
Simple Interest – interest that is computed on the ______.
principal
Lender or creditor – person (or institution) who ______ the money or makes the funds available
invests
Borrower or debtor – person (or institution) who ______ the money or avails of the funds from the lender
owes
Origin or loan date – date on which money is received by the ______
borrower
Maturity value or future value (F) – amount after t years that the lender receives from the ______ on the maturity date
borrower
Test your knowledge on Simple Interest and learn key terms related to lending and borrowing. This quiz covers topics such as interest calculation, lenders, borrowers, loan dates, and repayment dates. Challenge yourself and enhance your understanding of the fundamentals of simple interest.
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