COMPOUND INTEREST

Which interest is computed on the principal and then added to it?

• A. Simple

• B. Compound

• C. Annuity Date

• D. Ordinary annuity

What formula can be used to find maturity (future) value of a compound interest?

• A. F = P + I

• B. F = (1+r)^t

• C. Both a and b

• D. None of the choice

The interest from the previous year also earns interest, which of the following describes the statement?

• A. Simple

• B. Compound

• C. rate

• d. time

Compound interest is favorable to the following except

• A. Investor of a retirement fund

• B. Person who saves in bank

• C. investor of stocks

• D. borrower of a loan   

If P = ₱50, 000.00; r = 15% compounded annually and  t = 10 years, then what is the

    compound  interest?

• A. ₱252,277.89  

• B. ₱ 202,277.89  

• ₱152,277.89

• ₱102,277.89