GENMATH FINALS NI DREW

What is the term for the date on which money is received by the borrower?

• Maturity date

• Origin date

• Repayment date

• Principal

What is the formula for simple interest (Iₛ)?

• Iₛ = Prt

• Iₛ = r / Pt

• Iₛ = P / rt

• Iₛ = P + rt

What is the formula for exact interest (Iₑᵢ)?

• Iₑᵢ = Pr(Approximate number of days / 360)

• Iₑᵢ = Pr(Actual number of days / 365)

• Iₑᵢ = Pr(Approximate number of days / 365)

• Iₑᵢ = Pr(Actual number of days / 360)

What is the frequency of compounding for semi-annually?

• 12

• 4

• 6

• 2

What is the frequency of compounding for continous?

• 12

• e

• 6

• 2

What is the characteristic of annuities that requires payments to be the same every time from the beginning to the end of the annuity's term?

• Periodic

• Equal

• Specific Period of Time

• Continuous

What is the type of annuity where the payment interval and interest period are NOT the same?

• Simple Annuity

• Deferred Annuity

• General Annuity

• Ordinary Annuity

Amount paid or earned for the use of money

• Interest (I)

• Simple Interest (𝑰𝒔)

• Compound Interest (𝑰𝒄)

• Frequency of compounding (n)

Interest that is computed from the principal and on the accumulated past

• Simple Interest (𝑰𝒔)

• Interest (I)

• Compound Interest (𝑰𝒄)

• Frequency of compounding (n)

Interest that is computed on the principal and then added to it

• Compound Interest (𝑰𝒄)

• Frequency of compounding (n)

• Interest (I)

• Simple Interest (𝑰𝒔)