Free Printable Worksheets for learning Capital and Interest at the High School level

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Quiz on Capital and Interest

Multiple Choice

  1. What is Capital?

A. Money used to purchase goods and services B. Money used to invest in businesses C. Money used to save for the future D. Money used to pay off debt

  1. What is Interest?

A. Money paid for the use of Capital B. Money paid for the use of goods and services C. Money paid for the use of debt D. Money paid for the use of savings

  1. What is the formula for calculating simple interest?

A. Interest = Principal x Rate x Time B. Interest = Principal + Rate x Time C. Interest = Principal - Rate x Time D. Interest = Principal ÷ Rate x Time

True or False

  1. Capital is money used to purchase goods and services. True False

  2. Interest is money paid for the use of debt. True False

  3. The formula for calculating simple interest is Interest = Principal + Rate x Time. True False

Fill in the Blank

  1. The amount of money initially borrowed, invested, or saved is called the __________.

  2. The rate of interest is usually expressed as a __________.

  3. Compound interest is interest that is calculated on the __________.

Short Answer

  1. What is the difference between simple and compound interest?

  2. What are the advantages and disadvantages of using debt to finance capital investments?

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Capital and Interest

  1. What is the definition of capital?

    • A: Capital is money or assets used to generate income.

  2. What is the definition of interest?

    • A: Interest is a fee paid for borrowing money or for delaying payment of a debt.

  3. What is the relationship between capital and interest?

    • A: The relationship between capital and interest is that capital is used to generate income, and interest is the fee paid for borrowing money or for delaying payment of a debt.

  4. What is the difference between simple interest and compound interest?

    • A: Simple interest is interest calculated only on the initial amount of a loan or deposit, while compound interest is interest calculated on the initial amount plus any interest that has accumulated over time.

  5. True or False: Capital is money or assets used to generate income.

    • A: True
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