SIMPLE INTEREST ACVITITY

Which is technically defined as the price for the privilege of borrowing money?

• interest

• interest rate

• profit

• maturity value

Which is referred to as the amount of money borrowed by the borrower from the lender?

• interest rate

• time

• maturity value

• principal

If the interest given in the borrowed amount is 5%, how do you express the percent interest to its decimal counterpart?

• 0.005

• 0.05

• 0.5

• 5.0

You have a ₱10 000 worth of time-deposit in a bank with 4% annual interest. If you would get your money after 5 years, how much would be the interest?

• ₱1000

• ₱2000

• ₱3000

• ₱4000

Your friend borrowed ₱50 000 from the bank. If it has 7% interest, how much would be its maturity value after 2 years?

• ₱53 000

• ₱55 000

• ₱57 000

• ₱59 000

A ₱2 000 000 house loan was made by Mrs. Dwight in the year 1999. If it has 10% annual interest and has to mature in 2019, how much would be the interest?

• ₱ 4 000 000

• ₱ 6 000 000

• ₱ 3 000 000

• ₱ 2 000 000

What is being asked in the following problem?

In order to have ₱130 000 in 2 years, how much should you invest if the annual simple interest is 4.5%?

• maturity value

• principal amount

• interest earnings

• cannot be determined

What is the ending balance of ₱43 800 at 4.8% simple interest for 2 years?

• ₱45 902.40

• ₱48 004.80

• ₱21 024.00

• ₱2102.40

If you invest ₱25 000 at 8% simple interest anually, how much will your investment be worth in 14 months?

• ₱27 333.33

• ₱48 333.33

• ₱2333.33

• ₱23 333.33

Alice decided to pay off her ₱300 000 student loan with 4% interest rate early. The bank told her that she owes ₱4800 interest. Supposing that the bank follows 365-day year, for how many days is she being charged interest?

• 146 days

• 140 days

• 135 days

• 151 days