POST TEST ON GENMATH

Which of the following is not a term used in simple interest calculations?

• Principal

• Rate

• Time

• Dividend

In compound interest, the term that refers to the frequency with which interest is added to the principal is:

• Rate of interest

• Time period

• Compounding period

• Maturity date

Simple interest can be defined as:

• Interest on the interest earned.

• The interest earned on the principal amount over time.

• The difference between the maturity value and the present value.

• The total amount of money invested.

In simple interest, interest is calculated:

• Only on the original principal.

• On both the principal and previously earned interest.

• Every year on the reduced balance.

• Only on the final balance at the end of the term.

Which of the following best illustrates compound interest?

• Interest is calculated once at the end of the period.

• Interest is calculated yearly but added to the principal before the next calculation.

• Interest is subtracted from the principal every year.

• Interest is calculated and given back to the investor.

What is the formula for simple interest?

• I = P(1 + rt)

• I = Prt

• I = P(1 + r)t

• I = P / rt

What is the formula for compound interest?

• A = P(1 + r/n) ^nt

• A = P(1 + rt)

• A = P / (1 + rt)

• A = Prt

If P = ₱10,000, r = 5%, and t = 3 years, what is the interest earned using simple interest?

• ₱1,500

• ₱1,600

• ₱1,700

• ₱1,800

What is the maturity value of an investment with a principal of ₱12,000, a rate of 6% for 2 years using simple interest?

• ₱13,440

• ₱14,400

• ₱14,000

• ₱13,000

How much interest is earned on ₱5,000 at an annual interest rate of 8% for 4 years?

• ₱1,200

• ₱1,600

• ₱1,800

• ₱2,000