Math Quiz#1- Lesson in Business and Consumer Loans

What do you call the assets which can be used to secure a loan.

• Amortization

• Annuity

• Bond

• Collateral

What do you call the borrower in a business loan or consumer loan secured by a collateral?

• chattel

• creditor

• collateral

• mortgagor

Shaynen borrowed P 1,200,000.00 for the purchase of his car. If his monthly payment is P 30,000.00 on a 5-year mortgage, what is the total amount of interest?

• P600, 000.00

• P620, 000.00

• P650,000.00

• P680, 000.00

If a car is sold for P 1, 100,000 and the bank requires 15% down payment, what is the amount of the mortgage?

• P925, 000.00

• P935, 000.00

• P940, 000.00

• P950, 000.00

A business loan of P 1,000,000 is to be repaid in full after 5 years. What is the amount to be paid if the effective rate of interest is 10%?

• P 1, 255, 210

• P 1, 424, 230

• P 1, 610, 510

• P 1, 7120, 230

A business loan of P 1,000,000 is to be repaid in full after 5 years. What is the amount to be paid if the effective rate of interest is 10%?

• P 1, 255, 210

• P 1, 424, 230

• P 1, 610, 510

• P 1, 7120, 230