What is the principal in financial terms?

Financial Accumulation Functions and Interest

Interactive Video
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Mathematics
•
9th - 10th Grade
•
Hard

Thomas White
FREE Resource
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12 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The interest earned over time
The future value of an investment
The initial deposit or loan amount
The total amount paid back after a period
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How is accumulated value defined?
The initial deposit or loan amount
The present value of an investment
The total amount paid back after a period
The interest earned over time
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How is interest generally calculated?
Principal plus accumulated value
Present value minus future value
Future value minus present value
Accumulated value minus interest
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If a deposit of $300 accumulates to $325.12 after a year, what is the interest earned?
$300
$325.12
$50
$25.12
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
From a bank's perspective, what happens when they pay interest?
They gain money
They lose money
They break even
They increase their principal
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the accumulation function?
The future value of a $1 deposit after T years
The present value of a $1 deposit after T years
The interest rate of a $1 deposit after T years
The principal of a $1 deposit after T years
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is NOT a property of the accumulation function?
It increases over time
It starts at 1 when T is 0
It decreases over time
It is continuous and differentiable
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