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## Switch Account Your email will be recorded when you submit this form. * Indicates a required question ## Multiple Choice Read and analyze the question carefully. Choose the correct answer. **It is the amount of money that the borrower has to pay to the lender on top of the principal amount...

## Switch Account Your email will be recorded when you submit this form. * Indicates a required question ## Multiple Choice Read and analyze the question carefully. Choose the correct answer. **It is the amount of money that the borrower has to pay to the lender on top of the principal amount.** - Discount - **principal** - simple interest - loan proceeds **The amount of money that is being borrowed or loaned is called the** - Discount - **principal** - simple interest - loan proceeds **The total amount paid for a loan is called the** - Discount - principal - simple interest - **maturity value** **What's the formula for maturity value for simple interest? Choose 2 answers.** - F=P-I - **F=P+I** - **F=P(1+rt)** - F=P(1-rt) - Other: **How do you call the actual amount that the borrower will receive from the lender if it involves discount interest?** - Actual Money - Borrowed Money - **Loan Proceeds** - Loan Balance **Which of the statement below is correct?** - Simple interest is an interest computed from the original amount that was borrowed on an origin date. - Amount due (F) or maturity value is the combined amount of the principal amount and discount interest. - **Statement II only** - Both statements are correct. - None of the statements are correct. **Which of the following equations is used to find for the interest rate in simple interest?** - r=P/It - r=t/Pl - **r=I/Pt** - r=IPt - Other: **Which of the following equations is used to find for the time in simple interest?** - t=P/Ir - t=r/Pl - **t=I/Pr** - t=IPr - Other: **What's the formula for maturity value for simple interest? Choose 2 answers.** - F=P-I - **F=P+I** - F=P(1+rt) - F=P(1-rt) - Other: **How do you call the actual amount that the borrower will receive from the lender if it involves discount interest?** - Actual Money - Borrowed Money - **Loan Proceeds** - Loan Balance **Which of the statement below is correct?** - Simple interest is an interest computed from the original amount that was borrowed on an origin date. - Amount due (F) or maturity value is the combined amount of the principal amount and discount interest. - **Statement II only** - Both statements are correct. - None of the statements are correct. **Which of the following equations is used to find for the interest rate in simple interest?** - r=P/It - r=t/Pl - **r=I/Pt** - r=IPt - Other: **Which of the following equations is used to find for the time in simple interest?** - t=P/Ir - t=r/Pl - **t=I/Pr** - t=IPr - Other: **What's the formula for maturity value for simple interest? Choose 2 answers.** - F=P-I - **F=P+I** - F=P(1+rt) - F=P(1-rt) - Other: **How do you call the actual amount that the borrower will receive from the lender if it involves discount interest?** - Actual Money - Borrowed Money - **Loan Proceeds** - Loan Balance **Which of the statement below is correct?** - Simple interest is an interest computed from the original amount that was borrowed on an origin date. - Amount due (F) or maturity value is the combined amount of the principal amount and discount interest. - **Statement II only** - Both statements are correct. - None of the statements are correct. **Which of the following describes ordinary interest?** - Interest based on a period of 360 days, rather than 365 days. - Interest based on a period of 365 days, rather than 360 days. - Interest based on a period of 365 days, rather than 366 days. - **None of the above.** **Which of the following describes exact interest?** - Interest based on a period of 360 days, rather than 365 days. - **Interest based on a period of 365 days, rather than 360 days.** - Interest based on a period of 365 days, rather than 366 days. - None of the above. **An amount is compounded quarterly for 3 years at 8% annual rate. Find the periodic rate.** - 0.02 - 0.03 - 0.04 - 0.08 **An amount is compounded quarterly for 3 years at 8% annual rate. Find the compounding period.** - 3 - 6 - **12** - 24 **Identify if the given problem uses the concept of compound interest or simple interest?** Janna invested Php 80 000.00 at a bank that offers 12% interest rate compounded monthly. Find out how much she would have after 5 years. - **Compound Interest** - Simple interest **It is a sequence of payments made at equal (fixed) intervals or period of time.** - Simple Interest - Compound Interest - **Annuity** - None of the above **Which of the following statement/s is/are correct?** - Approximate time is based on the assumption that in every month there are 30 days. - Actual time refers to the precise number of days in every month. - **Both A and B.** - None of the statements is correct. ## Problem Solving Solve the following problem and choose the correct answer. **If Cadex borrowed P 40, 000.00 from the bank with an interest of 1% and to be repaid for 9 months, how much will be the interest?** - P100 - P200 - **P300** - P400 **What annual interest rate is needed for 1000 to earn 150 in 36 months?** - 2% - 3% - 4% - **5%** **In what time, 1000 will become 4000 when the annual rate of interest is 1%?** - 100yrs - 200yrs - 300 yrs - 400 yrs **Correct answer:** - **300 yrs** **Caden borrows P2, 000.00 for 6 months at a simple interest rate of 10% per year. Find the interest he is obligated to pay?** - P100 - **P200** - P300 - P400 **Find the exact interest paid on a Php 40 000.00 loan at 10% interest rate for 200 days.** - P1,192.87 - **P2,191.78** - P7,192.08 - P8,719.22 **Find the ordinary interest paid on a Php 40 000.00 loan at 10% interest rate for 200 days.** - P1,192.11 - **P2,222.22** - P2,118.67 - P3,123.24 **John is starting a business and he tried to loan in a bank. He loaned P 100, 000.00 with a 0.9% discount interest rate to be repaid for 4 years. How much is the discount rate?** - P1,200 - P2,220 - P3,200 - **P3,600** **Daryl is starting a business and he tried to loan in a bank. He loaned P 100, 000.00 with a 0.9% discount interest rate to be repaid for 4 years. How much is the loan proceeds?** - P97,000 - **P96,400** - P95,200 - P95,000 **EZ Photo Company needs five copying machines in 2 1/2 years for a total cost of P15,000. How much money should be deposited now to pay for these machines, if the interest rate is 8% compounded semiannually?** - P9,553.96 - P10,328.25 - P11,823.90 - **P12,328.91** **How much should be invested at 10.3% for it to amount to P10,000 in 6 years compounded annually?** - P3,553.25 - P3,453.25 - P4,553.25 - **P5,553.25** **Cris borrows Php 40, 000 and promises to pay the principal and interest at 1% compounded monthly. How much must he repay after 2 years?** - P12,506.17 - P21,800.37 - P33, 713. 32 - **P40,807.71** **Cris borrows Php 40, 000 and promises to pay the principal and interest at 1% compounded monthly. Find the compound interest after 2 years** - P506.17 - P800.37 - P713.32 - **807.71** **If Lyka borrowed P15, 000.00 from the bank on September 18, 2022 which is to be repaid on Nov 7, 2022 at 3% simple interest, find the approximate time.** - 46 - 47 - 48 - **49** **If Lyka borrowed P15, 000.00 from the bank on September 18, 2022 which is to be repaid on Nov 7, 2022 at 3% simple interest, find the actual time.** - 47 - 48 - 49 - **50** **If Lyka borrowed P15, 000.00 from the bank on September 18, 2022 which is to be repaid on Nov 7, 2022 at 3% simple interest, find the ordinary simple interest using approximate time.** - **P61.25** - P70.15 - P80.16 - P90.17 **Cris borrows Php 1,000 and promises to pay the principal and interest at 6% compounded monthly. How much must he repay after a year?** - **P1,061.68** - P1,060.68 - P1,063.68 - all of the above **The president of a bank has 18 million pesos in his bank's investment portfolio that he wants to grow to 25 million pesos in 8 years. What interest rate compounded annually does he need for this investment?** - 0.0419% - **4.19%** - 41.9% **Correct answer:** - **4.19%** **If Lyka borrowed P15, 000.00 from the bank on September 18, 2022 which is to be repaid on Nov 7, 2022 at 3% simple interest, find the exact simple interest using actual time.** - **P61.64** - P70.25 - P80.31 - P90.46 **How much did Carlo borrow if he is paying Php 2 500.00 at the end of every year at 9% compounded annually for 5 years?** - P16,534.63 - **P17,334.23** - P22,624.34 - P33,422.26 **Correct answer:** - **P17,334.23**