Algebra With Finance MidTerm Exam

Front

What is the additional cost a lender charges for borrowing their money?

Back

Interest.

Front

What is the initial amount of money invested or borrowed called?

Back

Principal.

Front

True or False: You need to have a credit card to build credit.

Back

Myth.

Front

What is the term for the amount of interest charged on a debt but not yet collected?

Back

Accrued Interest.

Front

A good credit report or a high credit score means you have what?

Back

Debt.

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal x Rate x Time.

Front

What does APR stand for in finance?

Back

Annual Percentage Rate.

Front

What is the time value of money?

Back

The concept that money available today is worth more than the same amount in the future due to its potential earning capacity.

Front

What is compound interest?

Back

Interest calculated on the initial principal and also on the accumulated interest from previous periods.

Front

What is a credit score?

Back

A numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of that person.