Podcast
Questions and Answers
What is the formula for simple interest?
What is the formula for simple interest?
- I = PRT (correct)
- I = P(1 + RT)
- I = P(1 - RT)
- I = P/RT
What does 'P' represent in the simple interest formula?
What does 'P' represent in the simple interest formula?
- Time period
- Interest
- Principal amount (correct)
- Annual interest rate
If the principal amount is $500, the annual interest rate is 8%, and the time period is 3 years, what is the simple interest?
If the principal amount is $500, the annual interest rate is 8%, and the time period is 3 years, what is the simple interest?
- $120
- $100
- $96 (correct)
- $60
What is compound interest?
What is compound interest?
In compound interest, what does 'n' represent in the formula for calculating the amount?
In compound interest, what does 'n' represent in the formula for calculating the amount?
What is an annuity?
What is an annuity?
What are stocks?
What are stocks?
What are bonds?
What are bonds?
What is the relationship between bond prices and interest rates?
What is the relationship between bond prices and interest rates?
If an investment grows at an annual compound rate of 5% for 3 years, how much will $500 grow to?
If an investment grows at an annual compound rate of 5% for 3 years, how much will $500 grow to?
Study Notes
Mathematics: Simple and Compound Interest, Annuities, Stocks, and Bonds
Simple Interest
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Description
Test your knowledge of simple and compound interest, as well as annuities, stocks, and bonds with this quiz. This quiz covers the fundamentals and calculations related to these financial concepts.