2nd Quarter - Quiz #1 (ABM 11-01)

It is the amount of money borrowed or invested on the origin date.

• Future Value

• Principal Value

• Maturity Value

• Repayment Value

It refers to the amount after t years that the lender receives from the borrower on the maturity date.

• Future Value

• Present Value

• Ordinary Interest

• Interest

Which of the following formulas is the appropriate to use in finding the maturity amount (future value) if the amount borrowed and the interest amount computed were given?

• 
• 
• 
• 

Which of the following describes time or term?

• It is the date on which money is received by the borrower.

• It is the amount paid or learned for the use of money.

• It is the date of which the money borrowed, or loan is to be completely repaid.

• It is the the length of time between the origin and maturity dates.

In the formula above, what is r?

• Revenue

• Real Value

• Recomputed Amount

• Rate of Interest

To buy a car, Stephanie borrowed $15,000 for 3 years at an annual simple interest rate of 9%. How much interest will she pay if she pays the entire loan off at the end of the third year? What is the total amount that she will repay?

• $17,700

• $20,400

• $19,050

• $18,375

John’s parents deposited ₱25,000 into a savings account as a college fund when he was born. In his account after 18 years, it accumulated to ₱39,625 in a yearly simple interest rate. What is the interest rate applied?

• 2.5%

• 2.75%

• 3.25%

• 3.55%

Elaine borrowed ₱35,000 to buy a laptop for her studies. In a simple interest rate of 5%, she needs to pay the total amount of ₱42,000 which includes the interest amount computed and the amount of money she borrowed. How long will she need to pay the full amount?

• 2 years

• 4 years

• 6 years

• 8 years

A digital bank is offering 7% simple interest on a savings account. If you deposit an exact amount of ₱35,624, how much interest will you earn annually?

• ₱1,781.20

• ₱1,959.32

• ₱2137.44

• ₱2,493.68

Mr. Cruz borrowed ₱500,000 for 10 years to make home improvements. He applied for 5% simple interest rate. How much will he going to pay if he wants it by monthly installments?

• ₱6,250

• ₱5,835

• ₱4,375

• ₱3,545