interest test

Last updated almost 2 years ago
10 questions
1

What is the basic definition of interest in business?

1

Which term refers to the interest that is calculated only on the initial amount that was deposited or borrowed?

1

What does APR stand for in terms of interest?

1

What impact does increasing interest rate have on borrowing?

1

If you take a loan, what does Finance Charge represent?

1

In the formula FC = PRT, what is represented by 'P'?

1

If the loan is $2000 and the add-on interest rate is 12%. What is the amount of the add-on interest for 2 years?

1

What is the purpose of the formula MP = (P + FC)/N in business?

1

What is the main difference between Compound and Simple Interest?

1

How does the frequency of compounding periods affect Compound Interest?