GM_Q2_LQ

What interest remains constant throughout the invest term?

• Simple Interest

• General Interest

• Compound interest
• Fixed interest

What is the difference between simple and compound interest?

• Simple interest is always higher than compound interest.
• Compound interest is calculated only on the principal amount.
• Simple interest can be compounded over time.
• Simple interest is calculated on the principal only; compound interest is calculated on the principal plus accumulated interest.

What is the formula for simple Interest?

It is the amount after t years that the lender receives from the borrower on the maturity date.

• Maturity Value

• Loan Date

• Maturity Date

• Principal Amount

In the simple interest formula, what does 'r' means?

• Return on investment
• Principal amount
• Time period
• Rate of interest

It is the amount of money borrowed or invested on the origin date.

• Principal
• Future value

• Term

• Interest

A person or institution who invests the money or makes the funds available.

• Lender
• Borrower
• Donor
• Drawer

If the investment amounting to P 35, 000 earned an interest of P 2, 500. How much will be the maturity value?

• P 37,500
• P 30,000
• P 35,500
• P 40,000

Given that P = 5, 250, r = 1.25% and t = 5 years, find the simple interest.

• 405.00

• 328.13

• 250.00

• 157.50

What is the frequency of conversion if the annual rate is compounded quarterly?

• 4
• 6
• 2
• 12