Simple and compound interest

This refers to the accumulated amount obtained by adding the principal and the compound interest.

• Compound amount

• Compound interest

• Present value

• Simple interestt

This refers to the interest rate per conversion period.

• Compound interest

• Periodic rate

• Rate of interest

• Simple interest

This refers to the amount paid or earned for the use of money.

• Conversion period

• Interest

• Principal

• Rate

What is the formula in computing the simple interest on a given financial transaction?

• $I_s=\Pr t$

•  $I_s=\Pr^2t$ 
  

• $I_s=\frac{P}{\text{rt}}$
  

• $I_s=\frac{r}{Pt}$
  

30 months is equivalent to ______.

• 2.5 years

• 2.75 years

• 3 years

• 3.25 years

Date on which the money borrowed or loaned is to be completely repaid.

• Conversion period

• Loan date

• Maturity date

• Origin date

How much is the simple interest on this financial transaction, P = ₱5,000.00, r = 6%, and t = 2 years?

• ₱120.00

• ₱600.00

• ₱1,200.00

• ₱6,000.00

The simple interest formula is I=Prt. The P represents the principal. The principal is ___________________.

• the amount of money borrowed or deposited

• the percent interest for his year

• the amount taxed

• the amount the bank owes you for being a customer at their bank

The simple interest formula is I=Prt. What does the t represent?

• Principle

• Interest

• Time

• Percent Rate

If you are calculating the simple interest and you are given the time in months. How can you find the time in years?

• divide 12 by the months

• divide the months by 12

• multiply 12 times the months

• change the months to a decimal