Quiz about Mathematics of Investments Midterm Examination

Question 1

Money paid for the use of money.

Accepted Answer

Interest

Answer

Capital

Answer

Future Value

Answer

Present Value

Question 2

Amount borrowed or deposited.

Accepted Answer

Principal

Answer

Future Value

Answer

Interest

Answer

Discount

Question 3

Formula to express simple interest.

Accepted Answer

i=Prt

Answer

I = -PRT

Answer

P=Irt

Answer

i=P/rt

Question 4

Lending money to someone.

Accepted Answer

Investor

Answer

Debtor

Answer

Owner

Answer

Proprietor

Question 5

Borrowing money from the investor.

Accepted Answer

Debtor

Answer

Proprietor

Answer

Investor

Answer

Owner

Question 6

Interest earned when a loan or

investment is repaid in a lump sum.

Accepted Answer

Simple Interest

Answer

Compount Interest

Answer

Discount

Answer

Annuity

Question 7

The percent of the principal paid as interest

per time period

Accepted Answer

Rate

Answer

Discount

Answer

Future Value

Answer

Annuity

Question 8

The number of days, months or years that

the money is borrowed or invested.

Accepted Answer

Time

Answer

Simple Interest

Answer

Annuity

Answer

Rate

Question 9

The sum of the

principal and interest due.

Accepted Answer

Future Value

Answer

Present Value

Answer

Interest

Answer

Principal

Question 10

Formula to express rate.

Accepted Answer

r=i/Pt

Answer

r=t/iP

Answer

r=P/it

Answer

r=r/Pt

Question 11

Formula to express time.

Accepted Answer

t=i/Pr

Answer

t=P/it

Answer

t=i/Pt

Answer

t=r/Pi

Question 12

Formula to express Principal.

Accepted Answer

P=i/rt

Answer

P=r/it

Answer

P=irt

Answer

P=r/it

Question 13

To express number of times the interest is compounded in a year.

Accepted Answer

n

Answer

t

Answer

r

Answer

i

Question 14

Interest calculated on the principal and the interest accumulated over the previous period.

Accepted Answer

Compound Interest

Answer

Simple Interest

Answer

Annuity

Answer

Discount

Question 15

Loan in which the borrower pledges some assets, like car or property as collateral.

Accepted Answer

Secured Loan

Answer

Unsecured Loan

Answer

Closed-ended Loan

Answer

Mortage

Question 16

Interest computed in a 365 days in a year as the time factor denominator.

Accepted Answer

Exact Interest

Answer

Ordinary Interest

Answer

Annuity

Answer

Depreciation

Question 17

Interest wherein the number of days is computed based on 360 days in a year.

Accepted Answer

Ordinary Interest

Answer

Exact Interest

Answer

Annuity

Answer

Depreciation

Question 18

Amount deducted at the beginning of the loan period instead of being added at the end.

Accepted Answer

Discount

Answer

Annuity

Answer

Interest

Answer

Penalty

Question 19

Compounded Quarterly

Accepted Answer

n=4

Answer

n=3

Answer

n=2

Answer

n=6

Question 20

A legal document in which a person or firm agrees to pay a certain amount of money, on a specific date, to another person of firm.

Accepted Answer

Promissory Note

Answer

Collateral

Answer

Term

Answer

Mortgage

Question 21

It means the interest earned in 6 months and added to the principal to earn additional interest for the next 6 months.

Accepted Answer

COMPOUND SEMI-ANNUALLY

Answer

COMPOUND ANNUALLY

Answer

COMPOUND QUARTERLY

Answer

COMPOUND MONTHLY

Question 22

It is the difference between the compound amount and the original principal.

Accepted Answer

Compound Interest

Answer

Compound Value

Answer

Simple Interest

Answer

Simple Value

Question 23

In order to have P50,000.00 in 5 years, how much should you invest if the compound interest is 5%?

Accepted Answer

39,176.31

Answer

36,176.31

Answer

33,176.31

Answer

37,176.31

Question 24

This term pays for protection against loss of life, property, and finances.

Accepted Answer

Insurance

Answer

Liability

Answer

Annuity

Answer

Bills

Question 25

Find the approximate time between August 7,1991 and March 12,1992.

Accepted Answer

215 days

Answer

235 days

Answer

245 days

Answer

205 days

Question 26

How long will it take for P 5,000.00 to accumulate to P 7,250.00 at 12% compounded monthly?

Accepted Answer

3.11 years

Answer

4.11 years

Answer

5.11 years

Answer

3.71 years

Question 27

Accumulate P 2,500.00 for 5 years at 8%,compounded quarterly.

Accepted Answer

P 3,714.88

Answer

P 3,414.88

Answer

P 3,744.88

Answer

P 3,914.88

Question 28

Cris borrows P50,000 and promises to pay the principal and interest at 12% compounded monthly. How much must he repay after 6 years?

Accepted Answer

Php 102,354.97

Answer

Php 102,854.97

Answer

Php 107,354.97

Answer

Php 102,394.97

Question 29

When money is compounded monthly, the frequency of conversion is_______ .

Accepted Answer

12

Answer

24

Answer

30

Answer

15

Question 30

John decided to invest his P50,000 for 3.5 years to a lending firm. How much will he get if it will earn an annual interest rate of 6.5%?

Accepted Answer

P 61,375.00

Answer

P 67,375.00

Answer

P 61,875.00

Answer

P 67,375.00

Question 31

What present value, compounded quarterly at 6%, will amount to P59,780.91 in 3 years?

Accepted Answer

Php 50,000.00

Answer

Php 55,000.00

Answer

Php 60,000.00

Answer

Php 65,000.00

Question 32

Find the compound amount due in 8 years if P200,000 is invested at 12% compounded monthly.

Accepted Answer

Php 519,854.59

Answer

Php 579,854.59

Answer

Php 519,354.59

Answer

Php 514,854.59

Question 33

Find the exact time between July 18,1990 and May 3,1991.

Accepted Answer

289 days

Answer

239 days

Answer

259 days

Answer

269 days

Question 34

Which of the following statement best describe the principal amount?

Accepted Answer

The amount of money invested or borrowed.

Answer

The amount paid or earned for the use of money.

Answer

The amount that the lenders receives from the borrower.

Answer

The amount of time in years the money is borrowed.

Question 35

Monthly means how many times a year?

Accepted Answer

12

Answer

24

Answer

365

Answer

30

Question 36

Semi-Annually means how many times a year?

Accepted Answer

2

Answer

6

Answer

4

Answer

1/2

Question 37

If you are calculating the simple interest and you are given the time in months. How can you find the time in years?

Accepted Answer

divide the months by 12

Answer

divide 12 by the months

Answer

multiply 12 times the months

Answer

change the months to a decimal

Question 38

Interest is paid only quarterly or annually on savings accounts.

Accepted Answer

False

Answer

Maybe

Answer

True

Answer

Rare

Question 39

Uses 30 days in every month.

Accepted Answer

Approximate Time

Answer

Actual Time

Answer

Exact Time

Answer

Ordinary Time

Question 40

Uses the exact number of days in every specific month

Accepted Answer

Actual Time

Answer

Approximate Time

Answer

Exact Time

Answer

Ordinary Time

Question 41

interest calculated based on a 360-day year

Accepted Answer

Ordinary Interest

Answer

Exact Interest

Answer

Approximate Interest

Answer

Actual Interest

Question 42

interest calculated based on a 365-day year

Accepted Answer

Exact Interest

Answer

Ordinary Interest

Answer

Actual Interest

Answer

Approximate Interest

Question 43

The total amount you must repay for a loan.

Accepted Answer

Maturity Value

Answer

Time

Answer

Present Value

Answer

Rate

Question 44

What is the future value , where present value=1000, r=6% and n=1 using simple interest?

Accepted Answer

1,060

Answer

4,060

Answer

1,660

Answer

7,060

Question 45

What is Banker's Rule?

Accepted Answer

Exact time & ordinary simple interest

Answer

Exact time & exact simple interest

Answer

Approximate time & exact simple interest

Answer

Approximate time & ordinary simple interest

Question 46

The person or (institution) who invests the money or makes the funds available.

Accepted Answer

Lender or Creditor

Answer

Principal

Answer

Co-maker

Answer

Borrower or Debtor

Question 47

The annual rate, usually in percent, charged by the lender, or rate of increase of the investment.

Accepted Answer

Rate (r)

Answer

Principal (P)

Answer

Interest (I)

Answer

Maturity Value or Future Value (F)

Mathematics of Investments Midterm Examination

69 questions

Money paid for the use of money.

Amount borrowed or deposited.

Formula to express simple interest.

Lending money to someone.

Borrowing money from the investor.

Interest earned when a loan or
investment is repaid in a lump sum.

The percent of the principal paid as interest
per time period

The number of days, months or years that
the money is borrowed or invested.

The sum of the
principal and interest due.

Formula to express rate.

Create a free account and access millions of resources

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Mathematics

Mathematics of Investments Midterm Examination

69 questions

Money paid for the use of money.

Amount borrowed or deposited.

Formula to express simple interest.

Lending money to someone.

Borrowing money from the investor.

Interest earned when a loan orinvestment is repaid in a lump sum.

The percent of the principal paid as interestper time period

The number of days, months or years thatthe money is borrowed or invested.

The sum of theprincipal and interest due.

Formula to express rate.

Create a free account and access millions of resources

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Mathematics

Interest earned when a loan or
investment is repaid in a lump sum.

The percent of the principal paid as interest
per time period

The number of days, months or years that
the money is borrowed or invested.

The sum of the
principal and interest due.