After mastering the material in this chapter, you will be able to:

1. Explain what interest means
   
2. Compute the time factor
   
3. Compute both ordinary and exact interest, using the principal, rate, and time factors
   
4. Compute any one unknown factor in the interest formula
   (I = P × R × T) when the other three factors are known
   
5. Understand and use the following terms:
   
   Interest
   Principal
   Rate
   Time
   The Calendar
   Leap Year
   The Interest Formula (I = P × R × T)
   Ordinary Interest
   Exact Interest