BM Topic 1 Quiz

The date on which money is received by the borrower

• Origin or Loan Date

• Time

• Repayment Date or Maturity Date

• Annually

The amount of money borrowed or invested on the origin date.

• Principal (P)

• Simple Interest

• Interest (I)

• Maturity Value or Future Value

Amount paid or earned for the use of money

• Coupon

• Simple Interest

• Interest (I)

• Compound Interest

Interest is computed on the principal and then added to it.

• Coupon

• Simple Interest

• Interest (I)

• Compound Interest

Interest is computed on the principal and also on the accumulated past interests.

• Interest

• Simple Interest

• Compound Interest

• Total Amount

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

• Principal (P)

• Rate (r)

• Interest (I)

• Maturity Value or Future Value (F)

A bank offers a 0.25% annual simple interest rate for a particular deposit. After a year RM2,500 will be earned from RM1 million deposited. What is the interest?

• 2450

• 5050

• 2500

• 4500

A bank offers a 0.25% annual simple interest rate for a particular deposit. After a year RM2,500 will be earned from RM1 million deposited. What is the principal amount?

• 1 Million

• 2 Million

• 500k

• 3 Million

A bank offers a 0.25% annual simple interest rate for a particular deposit. After a year RM2,500 will be earned from RM1 million deposited. How many years it takes to earn an interest of RM2,500 .

• 2 Years

• 3 Years

• 5 Years

• 1 Years

How long will RM1 Million earn a simple interest of 100,000 at 1% per annum?

• 10 Years

• 11 Years

• 6 Years

• 12 Years