(1) The price paid for using money is called __________.

(a) principal

(b) Rate

(c) Interest

(d) Loan

(e) Both (a) and (d)

(2) __________ interest applies when interest for each year is based on the amount of the loan or investment.

(a) Compound

(b) Simple

(c) Linear

(d) Quadratic

(e) Both (a) and (b)

(3) ___________ interest most often applies to savings accounts, installment loans, and credit cards and is based on the accumulated amount.

(a) Compound

(b) Simple

(c) Linear

(d) Quadratic

(e) Both (a) and (b)

(4) __________ is the amount of money borrowed or invested.

(a) Interest

(b) Principal

(c) Principle

(d) Rate

(e) Both (b) and (c)

(5) __________ is the percent of the principal paid as interest per time period.

(a) Interest

(b) Principal

(c) Principle

(d) Rate

(e) Both (b) and (c)

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