Financial Accumulation Functions and Interest

Financial Accumulation Functions and Interest

Assessment

Interactive Video

Mathematics

9th - 10th Grade

Hard

Created by

Thomas White

FREE Resource

The video tutorial introduces key financial terms such as principal, accumulated value, and interest. It explains how to calculate interest using a practical example and delves into the concept of the accumulation function, highlighting its properties like continuity and differentiability. The tutorial verifies a specific function as an accumulation function and discusses the amount function and effective interest rate, providing examples to illustrate these concepts.

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12 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the principal in financial terms?

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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