Question 1

1. Which of the following statements is/aretrue?

I. Compound interest of a loan favors theborrower.

II. Simple interest remains constant throughoutthe investment term.

III. In compound interest, the interest from the previous year also earns interest.

Accepted Answer

II and III

Answer

I, II, and III

Answer

I and III

Answer

I and II

Question 2

Which of the following will yield a higher interest?

Accepted Answer

A. Both a and b

Answer

Investing in a bank that offers a simple interest rate of 10% annually for 2 years

Answer

Saving money in a piggy bank for 2 years

Answer

A. Investing in a cooperative that offers an interest rate of 10% compounding annually for 2 years

Question 3

Rey wants to borrow money to Dave. Dave presents the following agreement. Help Rey decide through completing the tables. Answer item 3.

Accepted Answer

Php15&#44;000

Question 4

Rey wants to borrow money to Dave. Dave presents the following agreement. Help Rey decide through completing the tables. Answer item 4.

Accepted Answer

Php1&#44;350

Question 5

Rey wants to borrow money to Dave. Dave presents the following agreement. Help Rey decide through completing the tables. Answer item 5.

Accepted Answer

Php21,018.91

Related quizzes