QUESTION 1

1.The price paid for using money is called ____________.

principal

rate

interest

loan

10 points

QUESTION 2

1._________ interest applies when interest for each year is based on the amount of the loan or investment.

Compound

Simple

Linear

Quadratic

10 points

QUESTION 3

1._________ interest most often applies to savings accounts, installment loans, and credit cards and is based on the accumulated amount.

Compound

Simple

Linear

Quadratic

10 points

QUESTION 4

1.________ is the amount of money borrowed or invested.

Interest

Principal

Principle

Rate

10 points

QUESTION 5

1.__________ is the percent of the principal paid as interest per time period.

Principal

Interest

Rate

Principle

10 points

QUESTION 6

1.________ is the number of days, months, or years that the money is borrowed or invested.

Rate

Principal

Time

Mortgage

10 points

QUESTION 7

1._________ value is the amount of the loan plus the interest.

Loan

Maturity

Initial

Opening

10 points

QUESTION 8

1.The ________ interest rate is the lowest rate at which money is loaned to the most preferred borrowers.

main

initial

prime

value

10 points

QUESTION 9

1.________ time is based on counting 30 days in each month.

Exact

Preferred

Ordinary

Common

10 points

QUESTION 10

1.________ time is based on counting the actual number of days in a time period.

Exact

Ordinary

Latent

Preferred

10 points