GENMATH

1. What is the interest charged on the principal alone for the entire length of an or investment? - SIMPLE INTEREST 2. What do you call the amount you borrowed, deposited of invested? - PRINCIPAL 3. Which of the following refers to the amount paid or eamed for the use of money? - INTEREST 4. What is the interest on the principal and the interests earned an perods? - COMPOUND INTEREST 5. What refers to the length of time or period from the date the loan is made to the date the loan becomes due or payable? - TIME IN YEARS 6. What is the formula in finding the simple interest? - I=PRT 7. Interest is usually computed as percentage of the principal per year called, - RATE 8. What do you call the date which money is received by the borrower? -LOAN DATE 9. Xyth invests P3000 for one year at 6%. What is the interest rate in the problem? - 6% 10. Jair invests P5000 for one year at a rate of 10%. How much interest will he earn at the end of that year? - P500 11. Which of the following refers to the party lending money or extending credit? - LENDER 12. What refers to the party using the money or credit? - BORROWER 13. What is known as the due date of the payment of the principal? - MATURITY DATE 14. Which of the following does not belong to the group? - PRESENT VALUE 15. Which of the following refers to the annual interest rate that does not consider the compounding period? - NOMINAL RATE 16. Paris invests $2500 at a simple interest rate of 5%. What will be her balance at the end of three years? - P2875 17. How much interest is earned by Paris? (refer to question no:11] -P375 18. Teresa borrowed $120, 000 from her uncle. if Teresa agreed to pay an 8% annual interest rate, what is the amount of interest she must pay in 1 year? -P9600 19. A certain number of dollars are borrowed for 2 years at a rate of 15% compounded monthly. What is the interest compounding period in the given problem? - MONTHLY 20. When money is compounded semi annually, what is the number of compounding period? - 2 21. When money is compounded quarterly, what is the frequency of conversion? -4 22. Three thousand pesos is invested by London for a period of 3 years at a rate of 65%, compounded 2 times per year. What will be her balance in the account at the end of the investment period? -P3582 23. What is the formula in solving for the maturity value of simple inteREST? - ALL OF THESE 24. Angel invested a certain amount at 8% simple interest per year. After 6 years, the interest she received amounted to p48,000, how much did she imvest? -P100,00 25. You get a student loan from the New Mexico account for your educational expenses this year. What is the - $160 26. What is the future value when $250 invested at 6.5% for 8 years compounded - 420 27. If Mateo wants to earn P6,000 in interest after 4 years on how much should he invest? tweerest rate of 1% per year - P50,000 28. How long will it take for an investment of $20,000 to grow to $24,000 at a simple interest rate of es per year - 5 YEARS 29. If John invests $8,000 at a simple interest rate of 6% per year, how much total amount will the have after 5 years? - P10,400 30. Maria invested #15,000 at a simple interest rate of 7% per year for 3 years. What is the total amount she will receive at the end of the investment period? -P18,150 31. An investment of 10,000 is compounded annually at a rate of 6%. What will be the total amount after 2 years? 000 -P11,236 32. If $20,000 is invested at a 5% compound interest rate compounded annually, how much will the investment be worth after 3 years? -P23,152 33. Carlos invests P50,000 at an annual compound interest rate of 4% for 4 years compounded yearly. What will be the total value of his investment at the end of the 4 years? -P58,492.93 34. A sum of P25,000 is invested at a compound interest rate of 7% compounded annually. What will the value of the investment be after 6 years? -P37,518.26 35. If Leah earns #2,500 in interest after 4 years on an investment of $20,000 at simple interest, what was the annual interest rate? -3.13% 36. How long will it take for an investment of $30,000 to earn 99,000 in interest at a simple interest rate of 5% per year? -8.6 YEARS 37. Julia wants to accumulate $50,000 in 5 years with an investment of $40,000 at simple interest. What must be the annual interest rate? - 5 % 38. If P12,000 is invested at an annual compound interest rate of 7% compounded monthly, how long will it take for the investment to grow to $19,000? - 6.58 YEARS 39. Maria invested P25,000 in a savings account with an annual compound interest rate of 4% compounded annually. If she withdraws the money after 5 years and receives P30,525, what was the interest eamed? - P5,416.32 40. Sophia invests $100,000 in an account that compounds annually. After 4 years, her investment grows to P121,665 What is the annual interest rate of the investment? -5%

ANNUITY

What is referred to as a fixed sum of money paid to someone at regular intervals, subject to a fixed compound interest rate?

TERM OF AN ANNUITY

Which of the following refers to the time between the first payment interval and the last payment interval?

PRESENT VALUE

Which term represents the current worth of an annuity, calculated by discounting future payments to the present time?

PERIODIC PAYMENT

What term is used to refer to the series of equal payments made at regular intervals throughout the duration of an annuity?

FUTURE VALUE

Which term describes the amount that an annuity will accumulate to by the end of its term, including all periodic payments and interest?

SIMPLE ANNUITY

What type of annuity is illustrated when the interest conversion or compounding period is equal or the same or coincides as the payment interval?

GENERAL ANNUITY

What type of annuity is illustrated when the interest conversion or compounding period is unequal or not the same as the payment interval?

ORDINARY ANNUITY

What do you call the type of annuity in which the payments are made at the end of each payment interval?

ANNUITY CERTAIN

What do you call the type of annuity which payments begin and end at definite times?

CONTINGENT ANNUITY

What do you call the type of annuity in which the payments extend over an indefinite length of time?

ANNUITY DUE

A payment made at the beginning of each month for money borrowed which charges 1.05% interest compounded quarterly. What type of annuities is being represented?

DEFERRED ANNUITY

What type of annuity whose payments are made at the end of each payment interval, but the first payment is postponed to some later date?

INSURANCE

Which of the following is an example of a contingent annuity?

ORDINARY ANNUITY

What type of annuity according to the date of payment is represented by a deposit of P 6,000.00 that is made at the end of every three months to an account that earns 5.6% interest compounded quarterly?

ANNUITY DUE IS AN ANNUITY WHICH THE PAYMENTS ARE MADE AT THE BEGINNING OF EACH PAYMENT INTERVAL WHILE ORDINARY ANNUITY IS MADE AT THE END OF EACH PAYMENT INTERVAL

What is the difference between ordinary annuity and annuity due?

-P2000 DEPOSITED EVERY MONTH FOR 2 YEARS AT 8% PER YEAR COMPOUNDED MONTHLY

Which of the following situations is an example of a simple annuity?

• P5000 DEPOSITED EVERY MONTH FOR 5 YEARS AT 8% PER YEAR COMPOUNDED ANNUALLY

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

SIMPLE ANNUITY

A teacher saves P5,000 every month in the bank that pays 0.25% compounded monthly. What type of annuity is being shown?

ORDINARY ANNUITY

Melvin availed of a loan from a bank that gave him an option to pay P20,000 monthly for 2 years. The first payment is due after 4 months. What type of annuity is being referred to?

GENERAL ANNUITY

Mary Katheryn has just purchased a house for 2 000 000. She borrows the money and will repay it in monthly installments over 5 years. The interest rate is 8.4% compounded semi-annually. What type of annuity does Mary Katheryn availed?

GENERAL ANNUITY

Cris started to deposit P2 000 monthly in a fund that pays 6% compounded quarterly, What type of annuity according to the correspondence of payment interval and interest period is being shown?

SIMPLE ANNUITY

Emma wants to accumulate $40,000 in an annuity account over 20 years to support her retirement. The account has an annual interest rate of 5%, compounded monthly. She plans to make equal monthly deposits. What type of annuity according to the correspondence of payment interval and interest period is being shown?

ORDINARY ANNUITY

To save for his senior high school graduation, Lee decided to save P250 at the end of each month in a barik pays 3% compounded monthly. What type of annuity is this?

• $300

Maria wants to save for her retirement and decides to invest $300 at the end of each month into an annuity that earns an annual interest rate of 6%, compounded monthly. She plans to keep investing for 20 years. What is the periodic payment in this problem?

6%

25. Ryan has set up an annuity with 6% interest compounded annually and makes regular monthly contributions of $300. After 10 years, his account balance reaches $50,000. What is the interest rate given in this problem?

• 15years

Sarah invests $200 at the end of each period into an annuity account with an annual interest rate of 6% compounded yearly. After 15 years, she has saved 530,000 for her future. What is the compounding period given in this problem?

• P753,702.20

cash value or cash price of a purchase is equal to the downpayment plus the present value of the installment payment, thus, if Mrs. Camila paid P200,000 as downpayment for a car, and the present value is P753, 702.20, then what is the cash value?

P12,860.36

What is the future value of an ordinary annuity with a regular payment of P1,000 AT 5% interest rate compounded quarterly for 3 years?

• P15,024.31

. What is the present value of an ordinary annuity with regular quarterly payments worth P1,000 at 3% annual interest rate compounded quarterly at the end of 4 years?

• P433,417.10

Cassie availed of a loan from a bank that gave her an option to pay P20,000 monthly for 2 years. How much is the present value of the loan if the interest rate is 10% converted monthly?

P123,514.09

Peter started to deposit P5,000 quarterly in a fund that pays 1% compounded quarterly. How much will be in the fund after 6 years?

9429.53

You are making car payments of $315/month for the next 3 years, you know that your car loan has an interest rate of 12.4%, compounded monthly, what was the initial price of the car?

P45,976.3

If the money is worth 5% compounded quarterly, what the present value of an annuity P6,000 payable at the beginning of every six months for 2 years?

P82,836.48

Mr. Khalid will receive $8,500 a year for the next 15 years from her trust. If a 7 percent interest rate compounded annually is applied, what is the current value of the future payments if first receipt occurs today?

P19,660.31

Mr. Ribaya would like to save P500,000 for his son's college education. How much should he deposit in a savings account every 6 months for 12 years if interest is 1% compounded semi-annually?

P290,082.51

Ashianna Kim started to deposit P1000 monthly in a fund that pays 6% compounded quarterly. How much will be in the fund after 15 years?

P100,000

Fyang borrowed an amount of money from Kai. She agrees to pay the principal plus interest by paying P38, 973.76 each year for 3 years. How much did he borrow if interest is 8% compounded quarterly?

P38,668.13

To accumulate a fund of P500, 000 in 3 years, how much should Aling Paring deposit in her account every 3 months if it pays an interest of 5.5% compounded annually?

5 years

Liam plans to retire in 25 years and wants to receive a series of annual payments for 15 years afterward. He invests in a deferred annuity with an annual interest rate of 6%, compounded annually, but the payments will not start until 5 years after his retirement. What is the period of deferral for Liam's annuity?