Simple and Compound Interest (Grade 12 NSC Matric Business Studies): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does interest represent when you invest money?
What does interest represent when you invest money?
The reward for lending your money
What is capital gain?
What is capital gain?
Increase in investment value over time
With simple interest, what happens to the principal amount throughout the investment period?
With simple interest, what happens to the principal amount throughout the investment period?
It stays the same
Why is compound interest called 'interest on interest'?
Why is compound interest called 'interest on interest'?
It's calculated on principal plus earned interest
What does compound interest earn on that simple interest does not?
What does compound interest earn on that simple interest does not?
Previously earned interest
What is the formula for simple interest?
What is the formula for simple interest?
Interest = P × r × t
To use 12% in interest calculations, what decimal should you use?
To use 12% in interest calculations, what decimal should you use?
0.12
What is the formula for compound interest?
What is the formula for compound interest?
Interest = P × (1 + r)^n - P
Kaley invests R50,000 for 2 years at 12%. How much more does compound earn than simple interest?
Kaley invests R50,000 for 2 years at 12%. How much more does compound earn than simple interest?
R720
According to investment tips, what is your greatest ally with compound interest?
According to investment tips, what is your greatest ally with compound interest?
Time