Interest

Front 1

What is the simple interest formula?

Back 1

I = PRT

Front 2

What does P, R, T and I represent?

Back 2

P= Principal (original amount)
I = amount of simple interest
R = rate of interest as a decimal
T = Time in years

Front 3

How do you work out the amount repaid on the loan or collected from the investment in simple interest?

Back 3

A = P + I

Front 4

What is the difference between simple and compound interest?

Back 4

Simple interest formula gives us the amount of interest, whereas compound interest formula gives us the total amount at the end of the compounding period

Front 5

What is the formula for compound interest?

Back 5

A = P (1+r) n

Front 6

What do the letters represnt in the compound interest?

Back 6

A = Amount of loan or investment after T years

P= principal (original amount)

r= rate of interest as a decimal

n= how often interest is calculated over the life of the loan

Front 7

What is the formula to find the total interest earned or owing for compound interest?

Back 7

I = A - P

Front 8

How many periods in a year would you need in a year if interest was paid

1. monthly

2. half-yearly

3. quaterly

4. daily

Back 8

1. ( paid 12 times a year) 12 period

2. ( paid 2 times a year) 2 periods

3. (paid 4 times a year) 4 periods

4. ( paid 365 times a year) 365 periods

Front 9

What is Depreciation?

Back 9

Depreciation is the process by which items decrease in value eg. cars, furniture

Front 10

What is straight line depreciation?

Back 10

Straight line depreciation applies when items lose a constant amount of value each year.

Front 11

Define Depreciation Value

Back 11

amount of loss measured in dollars

Front 12

Define Cumlative depreciation

Back 12

depreciation over a number of years

Front 13

Define Inital cost or prime cost

Back 13

Original purchase price of the item

Front 14

Define written down value or adjusted value

Back 14

The value of the item after depreciation

Front 15

What is the straight line depreciation formula?

Back 15

D= PRT

Front 16

What is the formula to find the written down value for straight line depreciation?

Back 16

A or V = P - D

Front 17

What is the formula for reducing balance depreciaiton? What does each letter represent?

Back 17

A = P (1 - r ) T
A = written down cost

P= prime cost

r= rate of depreciation as a decimal

T= time

Front 18

What is the formula to find the depreciation total?

Back 18

D = P - A or V

Front 19

When doing growth and decay- if there is a increase how do you round?

Back 19

Round down

Front 20

When doing growth and decay- if there is a increase how do you round?

Back 20

Round up

Front 21

When there is a increase using the compound fomula do you plus or minus

Back 21

Plus

Front 22

When there is a decrease using the compound fomula do you plus or minus

Back 22

Minus

Front 23

When doing growth and Decay what must you write after a wordy answer?

Back 23

We must assume that the growth rate stays the same in t amount of years...