MULTIPLE CHOICES

Direction: Read each item carefully and write the letter of the appropriate answer.
1. It is the person(institution) who invest the money or makes the funds available.
A. lender B. debtor C.borrower D. A and C
2. It is the person who owes the money or avail of the funds.
A. lender B. debtor C.borrower D. B and C
3. A date on which the money borrowed or loan is to be completely repaid.
A. loan date B. Origin C. time or term D. maturity date
4. Interest that is computed on the principal and then added to it.
A. Simple interest B.Compound interest C. deferred annuity D.Interest compounded monthly
5. A bank offers 0.25% annual simple interest rate for a particular deposit. How much interest will be earned if 1 million
pesos is deposited in this savings account for 1 year?
A.3000 B.4000 C.4500 D.2500
6. How much interest is changed when 50000 pesos is borrowed for 9 months at an annual simple interest rate of 10%?
A.3500 B. 3750 C.3700 D.4000
7.If an entrepreneur applies for a loan amounting to 500,000 in the bank, the simple interest of which is 157,500 pesos for 3
years, what interest rate is being charged?
A. 10% 10.6% C.10.5% D.9%
8.How long will a principal earn an interest equal to half of it at 5% simple interest?
A. 5years B. 10years C. 10years and 2 months D. 10years and half
9. How longwill 40000 pesos amount to 51200 if the simple interest rate is at 12% per annum?
A. 2years B. 3years C.2.33years D. 2.5 years
10Angel deposited 20,000 pesos in a bank that pays 0.5% simple interest. How much will her money after 6 years?
A.20000 B.20100 C.20600 D. 20500
11. what would you do to make 25000 pesos can accumulate 33000 pesos in 5 years?
A. Invest more money. C. invest it with a rate that is equal to future value.
B. Add more years D.let it be.
12. what will happen when you borrowed some money with 8% of principal is added on your payment?
A. The amount of payment increase C. amount of payment decrease
B. Principal Amount remains the same D. It never change.
1
13. If a person borrowed 88,800 at an annual simple interest rate of 10 4 % for 18 months, how much interest should he
pay?
A.13,653 B.13,000 C.14,000 D.13,375
14. Find the compound interest if 10,000 pesos is compounded annually at an interest rate of 2% in 5years.
A. 1,040 B.1,040.81 C.1000 D.1000.82
15. Find the interest if 50,000 is invested at 5% compounded annually for 8 years.
A.23,872.77 B.23,872 C.23,408 D.23,408.2
16. What is the present value of 50,000 due in 7 years if money is worth 10% compounded annually?
A.25,57.91 B.25,657 C.25,645.9 D.25,464.5
17. What are the amounts of interest value of a loan for 20,000 at 6% compound interest for 3 years?
A. 3,820.32 B.23,820.32 C.27,640.64 D.27,000
18. In order to have 50,000 in 5 years, how much should you invest if the compound interest is 5%?
A.39,176.31 B.39,170.32 C.40,340.43 D.39,276.31
19. A savings account in a bank yields 0.25% compounded interest annually.Accumulate(find the future value of) 25,000
pesos for 4 years in this savings account. How much interest will be gained?
A.250.94 B.250 C.350.94 D.25,250.94
20. In certain bank, Angel invested 88,000 pesos in a time deposit that pays 0.5% compound interest in a years.How much
will be her money after 6 years?
A.90,673.22 B.2,673.22 C.45,338.11 D.5,246.44
21. It is a time between successive conversion of interest in compounding once a year.
A. Frequency of conversion B. interest period C. nominal rate D.total number of conversion period
22. It is the total number of periods in one year.
A.Frequency of conversion B. interest period C. nominal rate D.total number of conversion period
23. What is the one conversion period if you have a nominal rate of 2% compounded annually?
A.1 B.2% C.1 year D. none
24. If the nominal rate is 2% compounded semi-annually,what is the frequency of conversion?
A.2 B.1% C.6 months D.none
25. If the nominal rate is 4% compounded quarterly, what is the interest rate per conversion period?
A.0.5% B.1% C.5% D.16%
26. If the interest rate per conversion is 0.5% and the frequency of conversion is 4, What is one conversion period?
A.6 months B.3 months C.1 day D. 1year
27. If 1% is compounded daily ,what is the one conversion period?
A.A.6 months B.3 months C.1 day D. 1year
28.what is the interest rate per conversion period ,when the nominal rate is 2% compounded monthly?
A.0.166…% B.0.16% C.2% D.12%
28. if 10% is compounded daily ,what is the frequency of conversion?
A.6 months B.3 months C.1 day D. 365
29. Find the maturity value if 10,000 is deposited in a bank at 2%?
A.1,048.96 B.11,048.96 C.12,057.92 D.11,048
30. Find the interest if 10,000 is deposited in a bank at 2% compounded monthly for 5 years?
A.2,050.79 B.11,050.79 C.1,050.79 D.21,050.79
31Find the present value of 50,000 due in 4 years if the money is invested at 12% compounded semi-annually.
A.32,370.62 B.31,300.62 C.31,342 D.31,370.62
31. What is the present value of 25,000 due in 2 years and 6 months if the money is worth 10% compounded quarterly?
A.19,529.96 B.9,529.96 C.29,529 D.9,629.96
32.Suppose you invested 20,000 at 3% compounded continuously.How much will you have from this investment after 6
years?
A.20,944.35 B.23,944 C..22,944.35 D.2,944.35
32. How long will it take 3,000 pesos to accumulate to 3,500 in a bank savings account at 0.25% compounded monthly?
A.n=74 months B.n=70 months C.n=7 months D.n=740 months
33.how long will it take 1,000 pesos to earn 300 pesos if the interest is 12% compounded semi-annually?
A.n=4 B.n=4.503 C.n=2.25 D.5
34. It is the rate compounded annually that will give the same compound amount as a given nominal rate.
A.equivalent rate B.nominal rate C.effective rate D. rate per conversion
35.It is defined by two annual rates with different conversion periods that will earn the same compound amount at the end
of a given number of years.
A.equivalent rate B.nominal rate C.effective rate D. rate per conversion