Lesson 5

Question 1

is the amount borrowed

Answer 1

Principle

Question 2

is the cost of using money expressed as a percentage of the principle for a given period of time Which is usually per year.

Answer 2

Rate ( interest rate )

Question 3

is the term or period of the loan

Answer 3

Time

Question 4

Formula I= prt

Answer 4

Where I= Interest ( amount paid for the use of money)
P= principle ( amount borrowed )
R= rate (percentage of interest being charged)
T= time ( number of periods for which the money will be borrowed/lent/invested)