Understanding Stock Market Investments
28 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is NOT an example of annuities?

  • Educational plan
  • Pension
  • Deposit (correct)
  • Car loan

    • Which of the following situations is an example of a general annuity?

  • P5,000 deposited every month for 5 years at 8% per year compounded annually (correct)
  • P5,000 deposited every three months for 5 years at 8% per year compounded quarterly
  • P5,000 deposited every year for 5 years at 8% per year compounded annually
  • P5,000 deposited every six months for 5 years at 8% per year compounded semi-annually

    • Which of the following situations is NOT an example of simple annuity?

  • P1,500 deposited every month for 15 years at 10% per year compounded monthly
  • P1,500 deposited every six months for 15 years at 10% per year compounded semi-annually
  • P1,500 deposited every three months for 15 years at 10% per year compounded quarterly
  • P1,500 deposited every month for 15 years at 10% per year compounded annually (correct)

    • What is the present value of the simple annuity of P 5,000.00 payable semi-annually for 15 years if money is worth 6% compounded semi-annually?

    <p>P74,387.37</p> Signup and view all the answers

    Which of the following describes a characteristic of a general annuity?

    <p>Payments are made at the end of each period at a fixed rate</p> Signup and view all the answers

    Why do people typically buy stocks?

    <p>They expect to earn a return</p> Signup and view all the answers

    What best describes a bond?

    <p>A corporate or government debt obligation</p> Signup and view all the answers

    What is the purpose of a stock market index?

    <p>To serve as a benchmark for stock performance</p> Signup and view all the answers

    What type of loan is intended for personal, family, or household purposes?

    <p>Consumer loan</p> Signup and view all the answers

    What is the primary function of a guarantor?

    <p>To guarantee payment for another's debt</p> Signup and view all the answers

    How much will Lito pay as a down payment for a car costing P400,000 with a 10% requirement?

    <p>P40,000</p> Signup and view all the answers

    Which of the following sentences qualifies as a proposition?

    <p>It is raining outside.</p> Signup and view all the answers

    Which describes a compound proposition?

    <p>It is made up of simple propositions joined by logical connectors.</p> Signup and view all the answers

    Which of the following does not represent a logical connector?

    <p>Moreover</p> Signup and view all the answers

    What compound proposition can be formed from 'You are what you eat' and 'Your food can describe your health'?

    <p>If you are what you eat, then your food can describe your health.</p> Signup and view all the answers

    Which of the following may never describe a proposition?

    <p>Logical proposition</p> Signup and view all the answers

    What is the truth value of a false proposition?

    <p>False</p> Signup and view all the answers

    Which of the following shows a correct proposition?

    <p>Either true or false.</p> Signup and view all the answers

    Which logical operator uses the connector 'and'?

    <p>Conjunction</p> Signup and view all the answers

    Which denotes biconditional?

    <p>p ↔ q</p> Signup and view all the answers

    What is the formula for calculating simple interest?

    <p>I = P * r * t</p> Signup and view all the answers

    Which of the following statements describes compound interest?

    <p>Interest is reinvested for calculating future interest.</p> Signup and view all the answers

    If an investment has a principal of P20,000, an annual interest rate of 5%, and is held for 3 years, what is the future value using simple interest?

    <p>P23,000</p> Signup and view all the answers

    What does the variable 'n' represent in compound interest calculations?

    <p>Number of conversion periods</p> Signup and view all the answers

    When calculating the present value, which of the following factors is NOT considered?

    <p>Investment risks</p> Signup and view all the answers

    How is the future value calculated for compound interest?

    <p>A = P(1 + i)^n</p> Signup and view all the answers

    What is considered a certain annuity?

    <p>An annuity with guaranteed payments for a certain number of years.</p> Signup and view all the answers

    What formula can be used to determine the future value of an investment in simple interest?

    <p>F = P(1 + rt)</p> Signup and view all the answers

    Study Notes

    Why do people buy stock?

    • To expect a gain on return
    • Government encourages investment in the stock market
    • Companies offer dividends to shareholders

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Explore the reasons behind stock purchases and how they are influenced by potential gains, government policies, and dividend offerings. This quiz will help you understand the dynamics of investing in the stock market.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser