Individual Activity

NAME: ______________________ SCORE: _____________

Fill in the blanks with the correct financial term based on the description provided.

_____1. It is the amount paid or earned for the use of money.

_____2. It refers to the person or institution who owes money or avails of the funds from the lender.

____3. It is the interest computed on the principal and also on the accumulated past interest.

____4. It is the percentage of the principal that will be changed for a specified period of time.

____5. It refers to maturity value.

Write the word TRUE if the statement is correct; otherwise write FALSE on a separate answer sheet. If
your answer is FALSE, write the word or phrase that will make the statement correct.

1. Perma-debt decreases the amount of money available on hand to spend in the future.

2. Compound interest works well if you save early for retirement or invest early.

3. The longer it takes for you to pay a debt the smaller the interest you pay.

4. If borrowers pay at least the minimum payment every month of their debt, their must not be of good
standing.

5. If you are planning to invest, compound interest is better than the simple interest.