Simple, Compound Interest and Annuities

Rich borrowed from a friend Php 25,000 at 10% simple interest rate. How much should she pay after 3 years? What is unknown in the aforementioned problem?

• Interest

• Time

• Future Value

• Principal

Rich borrowed from a friend Php 25,000 at 10% simple interest rate. How much (in pesos) should she pay after 3 years?

• 40 000

• 32 500

• 75 000

• 7 500

Supposed a lending firm offered 8% interest compounded quarterly with the same term for the amount to be borrowed , how much(in pesos) should be paid by Rich?

• 31 706.045

• 222 902.511

• 62 954.253

• 26 530.200

Which is a better option for Kim for borrowing the money? Considering the same term for the amount to be borrowed offered by a lending firm with 8% interest compounded quarterly or the 10% annual interest rate offered by a friend? _____ because it yields to _____amount to be paid.

• 8% interest compounded quarterly: greater

• 10% annual simple interest rate : greater

• 10% annual simple interest rate : lesser

• 8% interest compounded quarterly: lesser

Paying a debt at the end of every six months with an interest that is compounded monthly. Determine the type of annuity.

• Simple Annuity Due

• Simple Ordinary Annuity

• General Ordinary Annuity

• General Annuity Due

Saving 10 000 Php at the beginning of each year in a fund that pays with an interest that is compounded annually. Determine the type of annuity.

• General Annuity Due

• Simple Ordinary Annuity

• Simple Annuity Due

• General Ordinary Annuity

What is the present value (in Php) of Php2000 monthly payments for 3years with interest rate of 10% compounded quarterly?

• 47 112.502

• 20 515.529

• 13 627. 384

• 27 591.106

What is the future value (in Php) of 5000 Php monthly payments for 2years with interest rate of 4% compounded annually?

• 320 413.021

• 10 200.000

• 195 413.021

• 75 129.027

Teacher Kaye is saving 2000 Php every month by depositing it in a bank that gives an interest of 2% semi annually. How much(in Php) will she save in 5years?

• 163 339.340

• 228 103.079

• 120 000.000

• 10 202.005

Find the present value(in Php) of a deferred annuity of P1 500.00 every 3 months for 8 years that is deferred 3 years if the money is worth 6% converted compounded quarterly.

• 63 666.342

• 41 491.026

• 22 175.315

• 105 157.368