Reviewer in General Mathematics

Which interest is computed on the principal and then added to it?

• Simple

• Compound

• Annuity due

• Ordinary Annuity

In the simple interest formula I = Prt, what does t represent?

• Principle

• Time

• Interest

• Percent rate

All of the following are used to find simple interest, EXCEPT?

• principal

• rate of interest

• time

• future value

It is the amount after t years that the lender will receive from the borrower.

• future value

• present value

• interest

• principal

Rate of interest must be converted into _____ before substituting to the formula of finding the interest.

• fractions

• Decimals

• Mixed numbers

• Percentage

The principal in the formula I = Prt 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

What interest remains constant throughout the investment term?

• simple

• compound

• annuity date

• ordinary annuity

It is an interest computed based on the principal amount.

• simple

• compound

• annuity date

• ordinary annuity

What is the difference between simple and compound interest?

• simple yields a higher interest than compound interest.

• simple interest has a shorter term than compound interest.

• simple interest is always better than compound interest.

• simple interest is computed based on the principal while compound interest is computed based on the principal and also on the accumulated past interest.

In the formula I = Prt, what is r?

• revenue

• real value

• repaid

• rate of interest