Consumer Arithmetic

Question 1

What is the difference between simple and compound interest?

Answer 1

Simple interest is always calculated off the principle

Compound interest is calculated on the principle and any interest already earned

Question 2

What is the Simple interest formula?

Answer 2

I=PRT
where:
I = Interest
P = Principle
R = interest rate per period as expressed as a decimal
T = the number of periods

Question 3

What is the Compound interest formula?

Answer 3

A=P(1+R)^n
Where
A = total amount 
P = principal
R = interest rate per period as a decimal
n = number of periods

Question 4

How do you find compound interest after using the formula?

Answer 4

I=A-P

Question 5

What is the depreciation formula?

Answer 5

A=P(1-r)^n

Question 6

What is reducible interest?

Answer 6

interest that is calculated on the amount still owing as opposed to the flat rate which is calculated on the original amount borrowed

Question 7

How do you figure out reducible interest?

Answer 7

with either a fuckload of working or like a table ja fel