Simple & Compound Interest

Refers to the fee or payment for the use of money.

• Discount

• Percentage

• Interest

• Annuity

It is the ration of simple interest and the of principal and time.

• interest

• rate

• time

• principal

Which of the following is not the same as the future value.

• present value

• maturity value

• accumulated value

• compound amount

The length of period from the date the loan is made to the date the loan becomes due payable.

• quarterly

• time

• annually

• monthly

The difference between the maturity value and the present value.

• Simple Interest

• Future Value

• Compound Interest

• Accumulated Value

The rate of interest per year.

• Frequency of conversion

• Number of conversion period

• Nominal rate

• Conversion Rate

• Principal (P)

• Rate of Conversion Period (i)

• Number of Conversion Period (n)

• Compound Amount (M)

The product of time (t) in years and frequency of conversion (m).

• interest rate per conversion period (i)

• nominal rate (j)

• number of conversion period per year (n)

• term of investment or loans in years (t)

For 8% compounded quarterly, find the rate of conversion period (i).

• ,08

• .06

• .04

• ,02

What is the number of conversion period (n) if 3 years and 2 months compounded monthly?

• n= 8

• n = 32/3

• n =16/3

• n = 38