4 Written Questions
4 Multiple Choice Questions
 Simple interest is only calculated on the original balance, but compound interest is calculated on the principal plus the annual balance
 The amount of money paid for the use of borrowed money
 A ratio that compares a number to 100
 The original amount deposited or borrowed
3 True/False Questions

Simple Interest → The interest calculated only on the principal

Formula for Simple Interest → I = prt (Interest  principal • rate • time)

Compound Interest → Interest that is paid on both the principal and also on any interest from past years.