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

Q 1: Interest is ________ proportional to the principal, rate of interest and time period. inversely not directly

Q 2: The amount of money one borrow for his needs (or) one lends to others is called _______. Rate Principal Amount Interest

Q 3: A=P+_?_ T R L I

Q 4: Find interest on $75 for 9 months at the rate of 2 cents per month per dollar. $14.40 $12.75 $15.30 $13.50

Q 5: 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? $545 $410 $590 $500

Q 6: The extra money that is repaid to the lender in addition to the money borrowed is called _____. Principal Amount Extra Interest

Q 7: The total money which is repaid to the lender at the end of agreed time is called ___ Rate Principal Interest Amount (Total Amount)

Q 8: The agreement between lender and borrower about interest to be calculated is called _______. Rate of Interest Principal Profit Interest

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