Question 1

It refers to the time that the money is borrowed.

Accepted Answer

Term

Answer

Principal

Answer

Interest

Answer

Maturity Value

Question 2

It refers to the percentage of increase of investment

Accepted Answer

Interest Rate

Answer

Maturity Value

Answer

Interest

Answer

Principal

Question 3

It is the amount of money borrowed or invested.

Accepted Answer

Principal

Answer

Maturity Value

Answer

Interest

Answer

Interest Rate

Question 4

It is the amount added by the lender, to be received on repayment date.

Accepted Answer

Interest

Answer

Principal

Answer

Maturity Value

Answer

Interest Rate

Question 5

It is the amount you would need to pay at the end of the loan period after simple interest is applied.

Accepted Answer

Future Value

Answer

Interest

Answer

Interest Rate

Answer

Principal

Question 6

It is an interest that is earned on both the principal and any interest
that has been earned previously.

Accepted Answer

Compound Interest

Answer

Future Value

Answer

Simple Interest

Answer

Interest Rate

Question 7

When a compound interest is added to the principal, the final amount is called _____________.

Accepted Answer

Compound Amount

Answer

Compound Money

Answer

Compound Interest

Answer

Compound Value

Question 8

If an interest is compounded twice a year, the interest is ___________________.

Accepted Answer

compounded semi-annually

Answer

compounded quarterly

Answer

compounded monthly

Answer

compounded annually

Question 9

If an interest is compounded every year, the interest is ___________________.

Accepted Answer

compounded annually

Answer

compounded semi-annually

Answer

compounded quarterly

Answer

compounded monthly

Question 10

If the frequency of conversion is 12, then the interest is compounded  ___________________.

Accepted Answer

compounded monthly

Answer

compounded semi-annually

Answer

compounded quarterly

Answer

compounded annually

Question 11

If the frequency of conversion is 4, then the interest is compounded  ___________________.

Accepted Answer

compounded quarterly

Answer

compounded monthly

Answer

compounded annually

Answer

compounded semi-annually

Question 12

What do you call the annual rate of interest?

Accepted Answer

nominal rate

Answer

annual rate

Answer

ordinal rate

Answer

compound rate

Question 13

At what simple interest rate per annum will $P1$ become $P2$ in 2 years?

Accepted Answer

50%

Answer

5%

Answer

100%

Answer

200%

Question 14

Mr. Ocampo invested $P150,000$ at 10%  compounded annually. He plans to get this amount after 6 years for his son’s college education. How much will he get then?

Accepted Answer

$P265,734.15$

Answer

$P990,000$

Answer

$P240,000$

Answer

$P90,000$

Question 15

What is the interest of $P25,000$ if invested at 4.5% compounded annually in 3 years and 2 months?

Accepted Answer

$P3,739.22$

Answer

$P28,739.22 $

Answer

$P25,001.15$

Answer

$P28,562.5$

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