Questions and Answers
In finance, ______ is calculated on the original principal only.
Simple Interest
The ______ is used to express a relationship between two quantities.
Ratio
When interest is calculated on the accumulated amount, it is referred to as ______ interest.
Compound
A ______ factor is a multiplier that relates measurements on a drawing to actual measurements.
Signup and view all the answers
A ______ is a way of expressing a number as a fraction of 100.
Signup and view all the answers
In finance, the formula for ______ is used to calculate the total interest earned over time.
Signup and view all the answers
A ______ can help compare two quantities, such as distance to time.
Signup and view all the answers
To find the total amount after interest is applied, you would add ______ to the principal amount.
Signup and view all the answers
A scale factor of 2 means that the drawing is ______ times larger than the actual size.
Signup and view all the answers
Expressing a part of the whole in terms of ______ allows for easy comparison with other quantities.
Signup and view all the answers
Study Notes
Simple Interest
- Simple interest calculated using the formula: I = PRT, where I is interest, P is the principal amount, R is the rate of interest per year, and T is the time in years.
- Interest is a fixed percentage of the principal, making it straightforward to calculate over time.
Compound Interest
- Compound interest calculated using the formula: A = P (1 + r/n)^(nt), where A is the amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.
- Interest is earned on both the initial principal and the accumulated interest from previous periods, leading to exponential growth over time.
Ratios and Rates
- Ratios represent a relationship between two quantities, showing how many times one value contains or is contained within another (e.g., 3:2).
- Rates express a ratio that compares two different units, such as speed (distance/time) or density (mass/volume), facilitating comparisons and calculations.
Percentage
- Percentage is a way to express a number as a fraction of 100, utilizing the symbol %.
- Commonly used to calculate discounts, tax, and interest rates, allowing for easier interpretation of changes in value concerning the whole.
Scale Factor
- Scale factor defines the ratio of the dimensions of a scaled object to the original object, critical in geometry for enlarging or reducing figures.
- To find the new dimensions, multiply each dimension of the original object by the scale factor, which is a positive number typically greater than or less than one.
Simple Interest
- Simple interest is calculated using the formula: ( I = P \times r \times t ), where ( I ) = interest, ( P ) = principal amount, ( r ) = rate of interest per period, and ( t ) = time the money is invested or borrowed.
- Interest remains constant over the period, making it easy to calculate for short-term investments or loans.
Compound Interest
- Compound interest is calculated on the initial principal, which also includes all accumulated interest from previous periods.
- The formula used is: ( A = P(1 + r)^n ), where ( A ) = the amount of money accumulated after n periods, ( P ) = principal amount, ( r ) = annual interest rate, and ( n ) = number of compounding periods.
- Compound interest grows faster than simple interest due to the reinvestment of earned interest.
Ratios and Rates
- A ratio is a comparison of two quantities, expressed as a fraction, proportion, or with a colon (e.g., 3:2).
- Rates are a specific kind of ratio that compares two quantities of different units, such as speed (e.g., kilometers per hour).
- Understanding ratios and rates is essential in solving real-world problems involving proportions, such as recipes or budgets.
Percentage
- Percentage represents a fraction out of 100, commonly used to express how much one quantity is of another.
- The formula to calculate percentage is: ( \text{Percentage} = \frac{\text{Part}}{\text{Whole}} \times 100 ).
- Percentages are widely used in financial calculations, statistics, and to compare quantities effectively.
Scale Factor
- Scale factor is a number that scales or multiplies a certain dimension or quantity in a proportional manner.
- Applied in concepts such as maps, models, and similar figures, it determines how much larger or smaller a figure is compared to the original.
- The scale factor is crucial for resizing objects accurately in mathematics and geometry.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers key concepts in the Western Australian Year 9 curriculum related to financial literacy. Students will explore simple interest, compound interest, ratios and rates, percentages, and scale factors. It's designed to help reinforce understanding of these essential mathematical principles.
