Genmath (simple & compound interest)

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%