Q2 COMPOUND INTEREST

1. An amount of money borrowed or invested on the origin date

• A. rate

• B. interest

• C. principal

• D. term

An interest that is computed on the principal and also on the accumulated past interests

• A. simple interest

• B. future value

• C. maturity value

• D. compound interest

An amount after t years that the lender receives from the borrower on the maturity date

• A. maturity value

• B. principal

• C. interest

• D. rate

Find the maturity value of ₱40,000.00 compounded annually at an interest rate of 2.5% in 4 years.

• A. ₱6,002,500.00

• B. ₱ 36,238.03

• C. ₱ 44,152.52

• D. ₱ 97,656.25

How much is the interest of ₱60,000.00 investment at 1.2% compounded annually for 10 years?

• A. ₱ 7,601.51

• B. ₱ 6,746.75

• C. ₱ 126,350.89

• D. ₱ 299,536.75

Find the maturity value if ₱75,000.00 is invested at 7% compounded annually for 10 years?

• A. ₱ 147,536.35

• B. ₱ 147,365.35

• C. ₱ 147,563.35

• D. ₱ 147,653.35

Suppose ₱55,000.00 will due in 9 years at 7% compounded annually. How much is the capital?

• A. ₱463.79

• B. ₱4,637.90

• C. ₱29,916,36

• D. ₱58,563.62

An amount paid or earned for the use of money.

• A. interest

• B. rate

• C. principal

• D. term

An amount after t years that the lender receives from the borrower on the maturity date

• A. maturity value

• B. principal

• C. interest

• D. none of these

An interest calculated on the sum of principal plus accumulated interest

• A. simple interest

• B. compound interest

• C. principal

• D. rate