Module 7 - Finance, Proabability, and Statistics

Which of the following can be used for P?

• starting amount

• initial

• principal

• total amount

Question #5

In the formula I=P·R·T, what does r stand for in a loan?

A. Rate: the interest percentage you will pay on a loan

B. Ratio: the size of the interest interval compared to time

C. Return: how much money you end up earning

D. Reserves: how much money you have in the investment

• A

• B

• C

• D

Question #6

Iris has earned $813 in interest on her investment. She made her only deposit in it seven years ago. Given that the investment yields 3.7% simple interest annually, how big was the initial deposit?

A. $1,806

B. $2,282

C. $3138

D. $3945

• A

• B

• C

• D

Question #9

Nate has an account that pays 2.76% simple interest per year and wants to accumulate $3,090 in interest from it over the next 15 years. How much money should Nate invest in this account to meet this goal?

A. $1,279.26

B. $4,369.26

C. $4,373.77

D. $7,463.77

• A

• B

• C

• D

What does P represent?

• interest rate

• time

• principal

• total amount

Question #16

You want a high interest rate when you borrow money.

A.) true

B.) false

• A

• B

Question #17

You want a high interest rate when you invest money.

A.) true

B.) false

• A

• B

The simple interest formula is I=PRT.  What does the T represent?

• Principal

• Time, in hours

• Interest

• Time, in years

The rate is given as a percent (%).  Before using it in the simple interest formula, you must first convert it to a______.

• Fraction

• Decimal

• Ratio

• Dollar Amount

Question #20

per annum means

A. per month

B. per fortnight

C. weekly

D. yearly

• A

• B

• C

• D