Final Review Exam Gen. Math

A type of interest that is computed on the principal and also on the accumulated past interest.

• Complex Interest

• Compound Interest

• Simple Interest

• Single Interest

This is the annual rate, usually in percent, charged by the lender, or rate of increase of the investment.

• Interest rate

• Maturity rate

• Nominal rate

• Principal rate

It is the amount after t years that the lender receives from the borrower on the maturity date.

• Interest

• Maturity value

• Principal value

• Term

Michael borrowed ₱150,000 from the bank at 4% interest. He paid the bank ₱6,000 every year, for a total of ₱30,000 in 5 years. Determine the interest rate on the given problem.

• ₱6,000

• ₱150,000

• 5 years

• 4%

Sarah deposited in her bank account ₱50,000 at an annual interest rate of 1% compounded annually. She earned an interest of ₱2,550.50 after 5 years. The money amounting to ₱2,550.50 in the problem is considered as what?

• Interest

• Interest rate

• Maturity value

• Principal value

For 3 years, Mr. Santos paid ₱3,000 in interest every year for the loan he got from the local farmers' cooperative amounting to ₱30,000 at 10% interest annually. Who is Mr. Santos in the problem?

• A local farmer

• Borrower

• Investor

• Lender

Determine the value of the time interval (m) if the investment is compounded semi-annually.

• 1

• 2

• 4

• 12

This is the length of time for which the compound interest is to be calculated.

• Due date

• Starting date

• Term

• Time frame

The base amount in which interest is computed. If an amount is loaned or borrowed, invested, deposited, this is the amount being referred to.

• Interest

• Interest rate

• Maturity value

• Principal value

If you will be going to invest in a bank, which of the following offers should you accept?

• 2% compounded annually in 5 years

• 2% compounded semi-annually in 5 years

• 2% compounded quarterly in 5 years

• 2% compounded monthly in 5 years