Chapter 7 Terms* Flashcards
0
Q
Principal Amount (principal)
A
The amount loaned or invested
1
Q
Interest
A
Money charged or earned on money
2
Q
Interest Rate
A
The percent used in computing the interest
3
Q
Simple interest formula
A
Simple interest = principal x rate x time
4
Q
Total amount formula
A
Total amount =principal + interest
5
Q
Compound interest
A
Interest that is computed based on the total amount
