Question 1

Which of the following terms is technically defined as the price for the privilege of borrowing money?

Accepted Answer

interest

Answer

interest rate

Answer

maturity value

Answer

profit

Question 2

Given the amount of principal as $P$, what other information do you need to calculate simple interest over a given period of time $t$?

Accepted Answer

rate of interest

Answer

maturity value

Answer

compound interest

Answer

present value

Question 3

The formula for solving the amount of interest is $I=Prt$. Therefore, in solving for $P$, we use ________________.

Accepted Answer

$P=\displaystyle\frac{I}{rt}$

Answer

$P=\displaystyle\frac{It}{r}$

Answer

$P=Irt$

Answer

$P=\displaystyle\frac{Ir}{t}$

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