Financial Math - Earning Interest - Vocabulary Quiz

What is the fee paid to use money, usually expressed as a percentage?

• Principal

• Interest

• Installments

• Compound Interest

Which type of account pays interest on funds deposited in a bank?

• Government Bonds

• Money Market Funds

• Bank Savings Account

• Short-term Loans

What are bonds issued by the government that are tax exempt?

• Bank Savings Account

• Government Bonds

• Money Market Funds

• Short-term Loans

What is the term for the amount invested?

• Interest

• Principal

• Installments

• Annual Percentage Rate

What is the term for recurring amounts paid at a specified time, such as annually?

• Principal

• Installments

• Interest

• Short-term Loans

What type of loans have to be repaid within less than one year?

• Government Bonds

• Money Market Funds

• Short-term Loans

• Bank Savings Account

What is the resulting rate when interest rates are expressed in years?

• Simple Interest

• Compound Interest

• Annual Percentage Rate

• Annual Percentage Yield

Which formula is used to determine simple interest?

• I = P * R * T

• I = P + R + T

• I = P / R / T

• I = P - R - T

What involves calculating interest on principal and previously earned interest?

• Simple Interest

• Compound Interest

• Annual Percentage Rate

• Installments

What is the interest rate earned over a year taking compound interest into effect?

• Annual Percentage Rate

• Simple Interest

• Annual Percentage Yield

• Principal