Gr 12 Math Lit: Ch 1.6 Interest Banking

To reduce the loan amount and interest paid

Real Cost of the Loan

It reduces the total interest paid

<p>It reduces the total interest charged</p> Signup and view all the answers

<p>To gain interest and increase the original amount</p> Signup and view all the answers

<p>A group pooling money for shared investments or purchases</p> Signup and view all the answers

<p>The lender</p> Signup and view all the answers

<p>To provide income during retirement</p> Signup and view all the answers

<p>Increasing the returns on investments</p> Signup and view all the answers

<p>The current balance, including previous interest</p> Signup and view all the answers

<p>Greater accumulation due to the extended period of compounding interest</p> Signup and view all the answers

<p>Decreasing the total interest paid</p> Signup and view all the answers

<p>To provide income during retirement</p> Signup and view all the answers

<p>Higher monthly repayments but lower total interest paid</p> Signup and view all the answers

<p>To benefit from pooled funds</p> Signup and view all the answers

<p>Increasing the cost of the loan</p> Signup and view all the answers

<p>Decreasing the total interest paid</p> Signup and view all the answers

<p>To balance between monthly affordability and total cost</p> Signup and view all the answers

<p>A loan involves borrowing money, while an investment involves placing money into a fund.</p> Signup and view all the answers

<p>The sale price minus the deposit equals the loan amount.</p> Signup and view all the answers

<p>To specify the period over which the loan must be repaid.</p> Signup and view all the answers

<p>A higher interest rate increases the real cost of the loan.</p> Signup and view all the answers

<p>A larger deposit reduces the loan amount and interest paid.</p> Signup and view all the answers

<p>To pay off the loan amount and interest owed.</p> Signup and view all the answers

<p>A lower interest rate reduces the total interest paid.</p> Signup and view all the answers

<p>To provide a guaranteed income stream during retirement.</p> Signup and view all the answers

<p>Simple interest is calculated on the original principal, while compound interest is calculated on the current balance.</p> Signup and view all the answers

<p>It increases the total interest earned over time.</p> Signup and view all the answers

<p>To maximize the returns on investment over time.</p> Signup and view all the answers

<p>It increases the total interest paid over time.</p> Signup and view all the answers

<p>It maximizes the benefits of compound interest over time.</p> Signup and view all the answers

<p>It increases the total interest paid over time.</p> Signup and view all the answers

<p>It reduces the total interest paid over time.</p> Signup and view all the answers

<p>It reduces the total interest paid over time.</p> Signup and view all the answers

<p>To maximize the returns on investment over time.</p> Signup and view all the answers

<p>It increases the total interest earned over time.</p> Signup and view all the answers

<p>Loan length</p> Signup and view all the answers

<p>Retirement annuity</p> Signup and view all the answers

<p>Who benefits from the interest</p> Signup and view all the answers

<p>It decreases the real cost of the loan</p> Signup and view all the answers

<p>Lower total interest paid</p> Signup and view all the answers

<p>It decreases the total interest paid</p> Signup and view all the answers

<p>To provide income during retirement</p> Signup and view all the answers

<p>Lower total interest paid</p> Signup and view all the answers

<p>It decreases the final investment value due to reduced compounding</p> Signup and view all the answers

<p>Compound interest is calculated on the original principal only</p> Signup and view all the answers

<p>To balance monthly affordability with total cost</p> Signup and view all the answers

<p>A higher interest rate leads to a higher final investment value</p> Signup and view all the answers

<p>It increases the final investment value due to compounding</p> Signup and view all the answers

<p>A loan involves borrowing, while an investment involves lending</p> Signup and view all the answers

<p>A shorter loan term leads to a lower total interest paid</p> Signup and view all the answers

<p>It increases the monthly repayment amount</p> Signup and view all the answers

<p>A higher monthly administration fee leads to a higher total interest paid</p> Signup and view all the answers

<p>To balance monthly affordability with total cost and maximize returns on investments</p> Signup and view all the answers