Mid Term Exam Review 2023 - Math Models

What is the simple interest formula?

• I = P/R*T

• I = P + R + T

• I = P^2 * R * T

• I = PRT

What is the compound interest formula?

• A = P(1 - r/n)^(t/n)

• A = P(1 + r/n)^(nt)

• A = P(1 + r/n)^(t/n)

• A = P(1 - r/n)^(nt)

Calculate the compound interest on a principal amount of $2000 at a rate of 8% per annum for 2 years, compounded annually.

• The compound interest is $200.00

• The compound interest is $337.08

• The compound interest is $500.00

• The compound interest is $1000.00

What is the difference between simple interest and compound interest?

• Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal amount and the accumulated interest.

• Simple interest is used for long-term investments, while compound interest is used for short-term investments.

• Simple interest is always higher than compound interest.

• Simple interest is calculated daily, while compound interest is calculated annually.

Calculate the amount when $5000 is invested at a simple interest rate of 6% per annum for 4 years.

• $5300

• $5500

• $5800

• $6200

Calculate the amount when $3000 is invested at a compound interest rate of 10% per annum for 5 years, compounded annually.

• The amount after 5 years would be $4000

• The amount after 5 years would be $4831.50

• The amount after 5 years would be $3500

• The amount after 5 years would be $5000

If the compound interest on a certain sum of money for 2 years at 6% per annum is $312, what is the principal amount?

• The principal amount is $2500

• The principal amount is $2000

• The principal amount is $1500

• The principal amount is $3000

Explain with an example how compound interest is calculated when the interest is compounded semi-annually.

• A = P(1 + r)^(2t)

• The correct answer is A = P(1 + r/2)^(2t), where A is the amount of money accumulated after t years, including interest, P is the principal amount, and r is the annual interest rate.

• A = P(1 + r/4)^(2t)

• A = P(1 + r/2)^(t/2)

In a box and whisker plot, what does the first quartile represent?

• The average of the data set.

• The median of the data set.

• The point at which 25% of the data set is below and 75% is above.

• The point at which 75% of the data set is below and 25% is above.

What is the first quartile in a box and whisker plot?

• The highest value in the data set

• The median of the lower half of the data set

• The median of the upper half of the data set

• The lowest value in the data set