What is the formula for calculating simple interest?

A = P(1 + in), where A is the accumulated value, P is the principal, i is the interest rate per time unit, and n is the number of time units.

True or False: Simple interest allows for interest to be calculated on both the principal and accumulated interest.

False. Simple interest is calculated only on the principal.

Fill in the blank: In a hire purchase agreement, the seller retains ___ until all payments are complete.

Ownership

What is the primary difference between simple interest and compound interest?

Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus all accumulated interest.

Riddle: I grow faster as time goes on, accumulating more with each period. What am I?

Compound interest

What does the term 'stealthflation' refer to?

Stealthflation refers to the situation where the price of an item remains the same, but the quantity or quality decreases.

Calculate the accumulated value with simple interest if the principal is $200, the interest rate is 5% per year, and n is 3 years.

A = 200(1 + 0.05 * 3) = 200(1 + 0.15) = 200 * 1.15 = $230.

True or False: Inflation can be beneficial for economic growth.

True. A small rate of inflation can encourage economic growth.

Fill in the blank: The formula for calculating inflation rate is i = [(___ price / Base price)(1/n)] - 1.

Inflated

What is an example of a common application of compound interest?

Home and vehicle loans, where banks charge interest on the outstanding balance.

Riddle: I help you buy now and pay later, but my total cost can exceed your initial purchase. What am I?

Hire purchase

What happens to the accumulated value when you increase the number of time units in compound interest?

The accumulated value increases exponentially as interest is calculated on the growing total.

Fill in the blank: A strong currency has a ___ exchange rate compared to a weaker currency.

Lower

What is the impact of a high inflation rate on currency value?

A high inflation rate can lead to a rapid loss of currency value.

True or False: Exchange rates do not fluctuate based on economic conditions.

False. Exchange rates fluctuate daily based on economic conditions.

What is the total cost of a hire purchase if the deposit is $50, the installments are $20 per month for 12 months?

Total cost = Deposit + (Installment × Number of months) = 50 + (20 × 12) = 50 + 240 = $290.

Riddle: I can increase prices over time but keep intrinsic value the same. What am I?

Inflation

What are the key features of a hire purchase agreement?

Key features include a deposit, regular installments with simple interest, and the seller retaining ownership until full payment.

Calculate the effective interest earned if the accumulated value after 2 years is $500 and the principal was $400.

Interest earned = A - P = 500 - 400 = $100.

What is the formula for calculating simple interest?

A = P(1 + in) where A is the accumulated value, P is the principal, i is the interest rate per time unit, and n is the number of time units.