Directions: Answer the following qustions. Also write at least five examples of your own.

Q 1: The agreement between lender and borrower about interest to be calculated is called _______. Profit Rate of Interest Interest Principal

Q 2: The total money which is repaid to the lender at the end of agreed time is called ___ Interest Amount (Total Amount) Rate Principal

Q 3: The amount of money one borrow for his needs (or) one lends to others is called _______. Rate Amount Interest Principal

Q 4: The interest per $100 per year is called ____. Rate of Interest Profit Principal Amount

Q 5: The extra money that is repaid to the lender in addition to the money borrowed is called _____. Extra Principal Interest Amount

Q 6: A person borrowed $500 at the rate of 3 cents per month per dollar and repaid the amount after 6 months. How much did he repay? $500 $410 $545 $590

Q 7: Find interest on $75 for 9 months at the rate of 2 cents per month per dollar. $15.30 $13.50 $14.40 $12.75

Q 8: Interest is ________ proportional to the principal, rate of interest and time period. inversely not directly

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