O: Choose the best answer. 1. Banker's rule means calculating interest on a loan based on: a) Ordinary time and ordinary interest b) Ordinary time and exact interest c) Ordinary interest and exact time d) Exact time and exact interest 2. When the interest is paid only on the sum borrowed, it is called a) Compound interest b) Simple interest c) Gross margin d) All of the above 3. The interest that is deducted at the time of obtaining loan is a) Simple interest b) Compound interest c) Simple discount d) Both (a) and (c) 4. 11 months = part of year. a) 0.752 b) 0.916 c) 0.712 d) None of the above 5. The ordinary time from January 12 to March 12 is a) 60 days b) 59 days c) 61 days d) 58 days 6. The exact time from June 12 to September 12 is a) 90 days b) 92 days c) 89 days d) None of the above 7. A type of Annuity that guarantees a minimum rate of interest on your money, as well as a fixed number of payments is called as a) Fixed annuity b) Variable annuity c) Index annuity d) None of the above