Q2: Lesson 1 | Simple Interest

Question 1

person (or institution) who invests the money or makes the funds available.

Answer 1

lender or creditor

Question 2

a person (or institution) who owes the money or avails of the funds from the lender.

Answer 2

borrower or debtor

Question 3

date on which money is received by the borrower.

Answer 3

origin or loan date

Question 4

a date which the money is borrowed or loan is to be completely repaid.

Answer 4

repayment date or maturity date

Question 5

amount of time in years the money is borrowed or invested; length of time between the origin and maturity date.

Answer 5

time or term

Question 6

amount of money borrowed or invested on the origin date.

Answer 6

principal

Question 7

annual rate, usually in percent, charged by the lender, or rate of increase of the investment.

Answer 7

rate

Question 8

amount paid or earned for the use of money.

Answer 8

interest

Question 9

interest that is computed on the principal and then added to it

Answer 9

simple interest

Question 10

interest that is computed on the principal and also on the accumulated past interests

Answer 10

compound interest

Question 11

amount after years (t) years; that the lender received from the borrower on the maturity date.

Answer 11

maturity value or future value

Question 12

is charged only on the loan amount called PRINCIPAL.

Answer 12

simple interest