True or false about simple interest

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   A depositor is lending money to the bank.

2. Statement is true

   No

   Statement

   Interest paid is rounded down to the cent.

3. Statement is true

   Yes

   Statement

   A future value paid out is rounded down.

4. Statement is true

   Yes

   Statement

   A term in months is divided by 12.

5. Statement is true

   No

   Statement

   A term in days is divided by 100.

6. Statement is true

   No

   Statement

   The origination date is when the loan is due.

Instructions

Decide whether each statement is true or false.

Explanation