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