Genmath (simple & compound interest)

SIMPLE INTEREST

The interest charged on the principal alone for the entire length of an investment.

PRINCIPAL

The amount you borrowed, deposited, or invested.

INTEREST

The amount paid or earned for the use of money.

COMPOUND INTEREST

The interest on the principal and the interests earned on previous periods.

TIME IN YEARS

The length of time from the date the loan is made to the date the loan becomes due.

I=PRT

The formula for finding the simple interest.

RATE

The annual percentage of the principal used to compute interest.

LOAN DATE

The date on which money is received by the borrower.

6%

The interest rate in the problem where Xyth invests P3000 for one year.

P500

The interest earned by Jair after investing P5000 at a rate of 10% for one year.

LENDER

The party lending money or extending credit.

BORROWER

The party using the money or credit.

MATURITY DATE

The due date of the payment of the principal.

PRESENT VALUE

The term that does not belong to the groups referred to in financial contexts.

NOMINAL RATE

The annual interest rate that does not consider the compounding period.

P2875

The balance Paris will have after investing $2500 at a simple interest rate of 5% for three years.

P375

The interest earned by Paris after three years on her $2500 investment.

P9600

The amount of interest Teresa must pay in 1 year for borrowing $120,000 at an 8% interest rate.

MONTHLY

The compounding period in a problem involving interest compounded monthly.

2

The number of compounding periods when money is compounded semi-annually.

4

The frequency of conversion when money is compounded quarterly.

P3582

The balance London will have after investing three thousand pesos for 3 years at a rate of 65%, compounded biannually.

ALL OF THESE

The formula used for solving the maturity value of simple interest.

P100,000

The amount Angel must invest to receive P48,000 in interest at 8% after 6 years.

$160

The educational expenses amount for which a student loan was borrowed.

$420

The future value of $250 invested at 6.5% for 8 years compounded.

P50,000

The amount Mateo should invest to earn P6,000 in interest after 4 years at 1% per year.

5 YEARS

The time it would take for an investment of $20,000 to grow to $24,000 at a simple interest rate.

P10,400

The total amount John will have after investing $8,000 at 6% simple interest for 5 years.

P18,150

The total amount Maria will receive at the end of 3 years after investing #15,000 at 7% simple interest.

P11,236

The total amount after investing 10,000 compounded annually at a rate of 6% for 2 years.

P23,152

The worth of a $20,000 investment at a 5% compound interest rate compounded annually after 3 years.

P58,492.93

The total value of Carlos' investment after 4 years at an annual compound interest rate of 4%.

P37,518.26

The value of a P25,000 investment after 6 years at a compound interest rate of 7% compounded annually.

3.13%

The annual interest rate that Leah earns on her investment after 4 years with $20,000, earning $2,500.

8.6 YEARS

The time needed for an investment of $30,000 to earn $99,000 in interest at a simple interest rate of 5%.

5%

The annual interest rate Julia must achieve to accumulate $50,000 in 5 years from a $40,000 investment.

6.58 YEARS

The time it will take for P12,000 to grow to P19,000 at a 7% annual compound interest compounded monthly.

P5,416.32

The interest earned by Maria from her investment of P25,000 after 5 years with a total withdrawal of P30,525.

5%

The annual interest rate of Sophia's investment that grew to P121,665 in 4 years from $100,000.