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Questions and Answers
What is the formula for calculating simple interest?
What is the formula for calculating simple interest?
- P × r
- P × r × t (correct)
- P × (1 + r)^t
- P + (r × t)
What is the main difference between simple and compound interest?
What is the main difference between simple and compound interest?
- Simple interest is only used for short-term investments
- Simple interest is calculated on the principal amount, while compound interest is calculated on the principal plus any accumulated interest (correct)
- Simple interest is always higher than compound interest
- Compound interest is only used for long-term investments
What is the shape of a compound interest graph?
What is the shape of a compound interest graph?
- Exponential (correct)
- Quadratic
- Linear
- Cubic
What is the total amount in a simple interest scenario?
What is the total amount in a simple interest scenario?
In a compound interest scenario, what happens to the principal at the end of each period?
In a compound interest scenario, what happens to the principal at the end of each period?
What is the formula for calculating the total amount in a compound interest scenario?
What is the formula for calculating the total amount in a compound interest scenario?
What is the formula for calculating the total amount in a simple interest calculation?
What is the formula for calculating the total amount in a simple interest calculation?
In a fixed deposit account, when is the interest calculated?
In a fixed deposit account, when is the interest calculated?
What is the term for purchasing an item now and paying for it later through installments?
What is the term for purchasing an item now and paying for it later through installments?
What is the total cost of a loan or hire purchase?
What is the total cost of a loan or hire purchase?
What is the formula for calculating the fee in Structure 1 of a bank fee?
What is the formula for calculating the fee in Structure 1 of a bank fee?
What is the shape of the graph for Structure 2 of a bank fee?
What is the shape of the graph for Structure 2 of a bank fee?
What is the formula for calculating the amount in a compound interest calculation?
What is the formula for calculating the amount in a compound interest calculation?
In a transactional account, how is the interest calculated?
In a transactional account, how is the interest calculated?
What is the difference between a loan and a hire purchase?
What is the difference between a loan and a hire purchase?
What is the formula for calculating the fee in Structure 3 of a bank fee?
What is the formula for calculating the fee in Structure 3 of a bank fee?
What is the primary factor that determines the interest calculated in a simple interest scenario?
What is the primary factor that determines the interest calculated in a simple interest scenario?
What is the main characteristic of a simple interest graph?
What is the main characteristic of a simple interest graph?
What is the key difference between simple and compound interest in terms of principal?
What is the key difference between simple and compound interest in terms of principal?
What is the result of compound interest over time?
What is the result of compound interest over time?
What is the primary advantage of compound interest over simple interest?
What is the primary advantage of compound interest over simple interest?
What is the relationship between the principal and interest in a compound interest scenario?
What is the relationship between the principal and interest in a compound interest scenario?
What is the main purpose of a fixed deposit account?
What is the main purpose of a fixed deposit account?
What is added to the principal amount in a loan or hire purchase?
What is added to the principal amount in a loan or hire purchase?
How is the interest calculated in a transactional account?
How is the interest calculated in a transactional account?
What is the purpose of a deposit in a loan or hire purchase?
What is the purpose of a deposit in a loan or hire purchase?
How does the length of the loan affect the total cost?
How does the length of the loan affect the total cost?
What is the difference between a loan and a hire purchase?
What is the difference between a loan and a hire purchase?
What is the purpose of a maximum fee limit in bank fee Structure 2?
What is the purpose of a maximum fee limit in bank fee Structure 2?
What is the shape of the graph for bank fee Structure 1?
What is the shape of the graph for bank fee Structure 1?
What is the main difference between bank fee Structures 1 and 3?
What is the main difference between bank fee Structures 1 and 3?
What is the purpose of the formula for calculating the total amount in a simple interest scenario?
What is the purpose of the formula for calculating the total amount in a simple interest scenario?
What is the main difference between a transactional account and a fixed deposit account?
What is the main difference between a transactional account and a fixed deposit account?
Which of the following is a key characteristic of a hire purchase?
Which of the following is a key characteristic of a hire purchase?
What is the purpose of a deposit in a loan or hire purchase?
What is the purpose of a deposit in a loan or hire purchase?
How does the length of the loan affect the total cost?
How does the length of the loan affect the total cost?
What is the main difference between bank fee Structure 1 and Structure 2?
What is the main difference between bank fee Structure 1 and Structure 2?
Why is compound interest more beneficial than simple interest?
Why is compound interest more beneficial than simple interest?
What is the primary factor that determines the interest calculated in a compound interest scenario?
What is the primary factor that determines the interest calculated in a compound interest scenario?
What is the result of compound interest over time?
What is the result of compound interest over time?
What is the main purpose of a fixed deposit account?
What is the main purpose of a fixed deposit account?
What is the relationship between the principal and interest in a compound interest scenario?
What is the relationship between the principal and interest in a compound interest scenario?
What is the primary factor that determines the rate of growth in a compound interest scenario?
What is the primary factor that determines the rate of growth in a compound interest scenario?
How does the principal amount change in a simple interest scenario?
How does the principal amount change in a simple interest scenario?
What is the main characteristic of a compound interest graph?
What is the main characteristic of a compound interest graph?
What is the result of applying simple interest to a loan or hire purchase?
What is the result of applying simple interest to a loan or hire purchase?
What is the primary advantage of compound interest over simple interest?
What is the primary advantage of compound interest over simple interest?
What is the key difference between simple and compound interest in terms of interest calculation?
What is the key difference between simple and compound interest in terms of interest calculation?
What is the effect of the interest rate on the total amount in a simple interest scenario?
What is the effect of the interest rate on the total amount in a simple interest scenario?
In a compound interest scenario, what happens to the principal amount and the interest over time?
In a compound interest scenario, what happens to the principal amount and the interest over time?
What is the main difference between the graph representation of simple and compound interest?
What is the main difference between the graph representation of simple and compound interest?
What happens to the total amount in a compound interest scenario if the interest rate remains constant but the time period increases?
What happens to the total amount in a compound interest scenario if the interest rate remains constant but the time period increases?
What is the relationship between the principal and interest in a simple interest scenario?
What is the relationship between the principal and interest in a simple interest scenario?
What is the effect of the time period on the total amount in a simple interest scenario?
What is the effect of the time period on the total amount in a simple interest scenario?
What is the primary difference between the interest calculation in a transactional account and a fixed deposit account?
What is the primary difference between the interest calculation in a transactional account and a fixed deposit account?
What is the effect of increasing the length of the loan on the total cost?
What is the effect of increasing the length of the loan on the total cost?
What is the purpose of a deposit in a loan or hire purchase?
What is the purpose of a deposit in a loan or hire purchase?
What is the main difference between bank fee Structure 1 and Structure 3?
What is the main difference between bank fee Structure 1 and Structure 3?
What is the primary factor that determines the interest calculated in a simple interest scenario?
What is the primary factor that determines the interest calculated in a simple interest scenario?
What is the main difference between a loan and a hire purchase?
What is the main difference between a loan and a hire purchase?
What is the primary advantage of compound interest over simple interest?
What is the primary advantage of compound interest over simple interest?
What is the main characteristic of a compound interest graph?
What is the main characteristic of a compound interest graph?
What is the result of applying simple interest to a loan or hire purchase?
What is the result of applying simple interest to a loan or hire purchase?
What is the purpose of a maximum fee limit in bank fee Structure 2?
What is the purpose of a maximum fee limit in bank fee Structure 2?
If the interest rate is 5% per annum, and the principal is $1000, how much interest will be earned in 2 years under a simple interest scenario?
If the interest rate is 5% per annum, and the principal is $1000, how much interest will be earned in 2 years under a simple interest scenario?
A savings account has a principal of $5000, and an interest rate of 3% per annum. If the interest is compounded annually, what will be the total amount after 3 years?
A savings account has a principal of $5000, and an interest rate of 3% per annum. If the interest is compounded annually, what will be the total amount after 3 years?
Which of the following statements is true about the graph of a simple interest scenario?
Which of the following statements is true about the graph of a simple interest scenario?
What is the main difference between simple and compound interest in terms of the principal amount?
What is the main difference between simple and compound interest in terms of the principal amount?
If the principal is $2000, and the interest rate is 4% per annum, what will be the total amount after 5 years under a compound interest scenario?
If the principal is $2000, and the interest rate is 4% per annum, what will be the total amount after 5 years under a compound interest scenario?
Which of the following statements is true about the relationship between the principal and interest in a compound interest scenario?
Which of the following statements is true about the relationship between the principal and interest in a compound interest scenario?
What is the primary reason for the difference in interest calculation between a transactional account and a fixed deposit account?
What is the primary reason for the difference in interest calculation between a transactional account and a fixed deposit account?
Which of the following is a characteristic of a loan, but not a hire purchase?
Which of the following is a characteristic of a loan, but not a hire purchase?
What is the primary purpose of the maximum fee limit in bank fee Structure 2?
What is the primary purpose of the maximum fee limit in bank fee Structure 2?
What is the result of applying compound interest to a principal amount over a long period of time?
What is the result of applying compound interest to a principal amount over a long period of time?
What is the primary factor that determines the total cost of a loan or hire purchase?
What is the primary factor that determines the total cost of a loan or hire purchase?
What is the main difference between bank fee Structures 1 and 3?
What is the main difference between bank fee Structures 1 and 3?
What is the effect of a higher interest rate on the total amount in a simple interest scenario?
What is the effect of a higher interest rate on the total amount in a simple interest scenario?
What is the primary advantage of using a fixed deposit account?
What is the primary advantage of using a fixed deposit account?
What is the relationship between the principal and interest in a simple interest scenario?
What is the relationship between the principal and interest in a simple interest scenario?
What is the purpose of a deposit in a loan or hire purchase?
What is the purpose of a deposit in a loan or hire purchase?
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