discounts, interest and hire purchase Quiz

What is the formula to calculate the amount after discount?

• Amount after discount = Original amount + (Original amount * Discount percentage)

• Amount after discount = Original amount / (1 - Discount percentage)

• Amount after discount = Original amount - (Original amount * Discount percentage)

• Amount after discount = Original amount * (1 - Discount percentage)

If the principal amount is $1000, the interest rate is 5% and the time period is 3 years, what is the simple interest?

• $150

• $50

• $100

• $200

What is the formula to calculate compound interest?

• A = P(1 + r/n)^(nt)

• A = P(1 + r)^nt

• A = P(1 - r/n)^(nt)

• A = P(1 - r)^nt

What is an advantage of hire purchase?

• It does not allow the buyer to acquire an asset

• It has higher interest rates compared to other financing options

• It requires the buyer to pay the full purchase price upfront

• The advantage of hire purchase is that it allows the buyer to acquire an asset without having to pay the full purchase price upfront.

What is a disadvantage of hire purchase?

• Low financial cost

• No financial commitment

• Flexibility in payment terms

• Financial cost and commitment

If the marked price of a product is $200 and the discount offered is 20%, what is the selling price?

• 175

• 150

• 160

• 180

If the principal amount is $5000, the interest rate is 8% and the time period is 2 years, what is the compound interest?

• $500

• $849.92

• $1000

• $250

What is one advantage of simple interest over compound interest?

• Higher returns on investment

• More flexible in terms of payment schedule

• Provides better long-term growth potential

• Easier to calculate and understand

What is one disadvantage of simple interest over compound interest?

• Simple interest has higher returns

• Compound interest earns more interest over time.

• Simple interest is easier to calculate

• Simple interest is more flexible

In hire purchase, who owns the item until the final payment is made?

• Manufacturer

• Seller or lender

• Buyer

• Government