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

Q 1: 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? $590 $500 $410 $545

Q 2: The agreement between lender and borrower about interest to be calculated is called _______. Interest Principal Profit Rate of Interest

Q 3: Interest is ________ proportional to the principal, rate of interest and time period. inversely directly not

Q 4: A=P+_?_ T L R I

Q 5: Find interest on $75 for 9 months at the rate of 2 cents per month per dollar. $12.75 $14.40 $13.50 $15.30

Q 6: The total money which is repaid to the lender at the end of agreed time is called ___ Interest Rate Amount (Total Amount) Principal

Q 7: The extra money that is repaid to the lender in addition to the money borrowed is called _____. Principal Amount Interest Extra

Q 8: The amount of money one borrow for his needs (or) one lends to others is called _______. Principal Amount Interest Rate

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