Finals - Finance

Interest is mostly computed yearly?

• True

• False

Simple Interest can be computed quarterly?

• False

• True

Sam gets a loan to AGC Bank to expand their business. After 5 year , she paid a total amount of Php. 125,000.00 with 5,000 interest .

Q: What is the Principal Amount

• Php. 125,000

• Php. 100,000

• Php. 5,000

• Php. 25,000

Sam gets a loan to AGC Bank to expand their business. After 5 year , she paid a total amount of Php. 125,000.00 with 5,000 interest .

Q: What is the loan term?

• 12 months

• 24 months

• 48 months

• 60 months

Sam gets a loan to AGC Bank to expand their business. After 5 year , she paid a total amount of Php. 125,000.00 with 5,000 interest .

Q: What is the interest rate?

• 25%

• 5%

• .05%

• 2.5%

Compound Interest in simple terms is the interest upon interest.

• False

• True

For Simple Interest it is important to compute the interest of past period.

• True

• False

Which is not included in computing the compound interest?

• Investment Period

• No. of Months

• Initial Loan

• Interest

Future Value concepts is that the value of money today is lesser than the value of money in the future.

• False

• True

Present Value is the current value of your money.

• True

• False