GM_Q2_A

What interest remains constant throughout the investment term?

• Simple

• Compound

• Annuity Date

• Ordinary Annuity

In the formula, I = Prt, what is r?

• Revenue

• Real Value

• Repaid

• Rate of interest

If you would like to invest money, which bank offer would you prefer if you do not plan to withdraw your money in 2 years?

• 5% simple interest per annum

• 4% compounded interest per annum

• 3% compounded interest per semi-annually

• 2% compounded interest quarterly

Which of the following statements is/are true?

I. Compound interest of a loan favors the borrower

II. Simple Interest remains constant throughout the investment term

III. In compound interest, the interest from the previous year also earns interest

• I only

• I and II

• II and III

• I and III

If the investment amounting to Php 35,000 earned an interest of Php 2,500 how much will be the maturity value?

• Php 32,500

• Php 37,500

• Php 30,000

• Php 40,000

Given that P = Php 5,250, r = 1.25% and t = 5 years, find the simple interest.

• Php 32,812.50

• Php 3,281.25

• Php 328.13

• Php 32.82

Michael borrowed money from Castañas Cooperative Bank at 1.75% simple interest for 5 years to add to his funds for his new business. It was charged Php 5,250.00 for interest.

What formula will be used to determine the amount of borrowed money?

Michael borrowed money from Castañas Cooperative Bank at 1.75% simple interest for 5 years to add to his funds for his new business. It was charged Php 5,250.00 for interest.

How much will he need to pay after 5 years?

• Php 5,709.38

• Php 9,843.75

• Php 11,250.00

• Php 65,250.00

What type of annuity is illustrated when the interest conversion or compounding period is equal or the same as the payment interval?

• annuity certain

• simple annuity

• annuity uncertain

• general annuity

What type of annuity is illustrated when the interest conversion or compounding period is unequal or not the same as the payment interval?

• annuity certain

• simple annuity

• annuity uncertain

• general annuity