7th_M2T2_Retest

Front

What is the formula for calculating simple interest?

Back

I = Prt, where I is the interest, P is the principal, r is the rate, and t is the time.

Front

What is the principal amount in an investment?

Back

The principal is the initial amount of money invested or loaned before interest.

Front

How do you calculate the total value of an investment after a certain time with simple interest?

Back

Total Value = Principal + Interest, where Interest = Prt.

Front

If you invest $200 at a simple interest rate of 3% for 5 years, what is the total value of the investment?

Back

$230.

Front

What is net worth?

Back

Net worth is the total value of all assets minus total liabilities.

Front

How do you calculate net worth?

Back

Net Worth = Total Assets - Total Liabilities.

Front

If Laney has $15,755 in school loans and $4,324.98 in credit card debt, what type of financial obligation are these?

Back

Liabilities.

Front

What is an asset?

Back

An asset is anything of value or a resource owned by an individual or entity.

Front

What is a liability?

Back

A liability is a financial obligation or debt owed to another party.

Front

If you earn $255 in simple interest on a principal of $850 over 10 years, what is the interest rate?

Back

3%.