Unit 12 Lesson 1 : Simple Interest

Question 1

Identification:

When a person invests or lends money, he or she pays an additional amount on top of the original investment/loan.

Answer 1

Interest

Question 2

Identification:

refers to the party lending money or extending credit.

Answer 2

Lender / Creditor

Question 3

Identification:

refers to the party using the money or credit, who expects future expenses at the cost of using it.

Answer 3

Burrower / Debtor

Question 4

Identification:

refers to the amount of money extended for credit or the amount of money deposited in a bank for safekeeping.

Answer 4

Principal

Question 5

Identification:

refers to the charged amount for using the money over a certain period.

Answer 5

Interest rate

Question 6

Identification:

refers to the period covered from the time that the money is burrowed until its due date.

Answer 6

Time

Question 7

Identification:

The due date of the payment of the principal is known as ____

Answer 7

Maturity date

Question 8

Identification:

refers to an interest that is computed on the original principal during the whole period or time of burrowing.

Answer 8

Simple interest

Question 9

Identification:

refers to the same of the principal and interest.

Answer 9

Maturity value / Amount / Future Value

Question 10

What is the formula for finding the interest rate?

Answer 10

I = Prt

Question 11

What is the formula for finding the rate?

Answer 11

I
r = —-
pt

Question 12

What is the formula for finding the Principal amount?

Answer 12

I
P = —-
rt

Question 13

What is the formula for finding the Time?

Answer 13

I
t = —-
pr