Quiz about Chapter 2 GenMath Quiz

Question 1

What is the formula for calculating simple interest?

Accepted Answer

I = Prt

Answer

I = P/r*t

Answer

I = P + rt

Answer

I = P + r + t

Question 2

f the principal amount is Php 5,000, the rate is 9%, and the time is 3 years, what is the final amount?

Accepted Answer

Php 6,350

Answer

Php 5,500

Answer

Php 7,000

Answer

Php 6,000

Question 3

What does the variable 'F' represent in the formula F = P + I?

Accepted Answer

Final amount

Answer

Rate of interest

Answer

Interest

Answer

Principal

Question 4

What is the interest earned on a loan of Php 15,000 at a rate of 7% for 2 years?

Accepted Answer

Php 2,100

Answer

Php 1,050

Answer

Php 2,500

Answer

Php 1,400

Question 5

What is the formula to find the time 't' in simple interest calculations?

Accepted Answer

t = I / (Pr)

Answer

t = F / P

Answer

t = I / P

Answer

t = Pr / I

Question 6

How many days are counted for the actual time between June 10, 2012, and September 24, 2012?

Accepted Answer

106 days

Answer

104 days

Answer

90 days

Answer

120 days

Question 7

What is the ordinary interest formula at actual time?

Accepted Answer

Io = Pr(Actual time) / 360

Answer

Io = P + r + t

Answer

Io = Prt

Answer

Io = Pr(Actual time) / 365

Question 8

What is the approximate time in days between October 31, 2004, and March 25, 2005?

Accepted Answer

145 days

Answer

150 days

Answer

140 days

Answer

160 days

Question 9

What is the face value (FV) of a simple interest note?

Accepted Answer

The value stated on the note

Answer

The interest charged

Answer

The date on which the total amount is due

Answer

The total amount to be repaid

Question 10

What formula is used to calculate the maturity value (MV) of a simple interest note?

Accepted Answer

MV = FV(1 + rt)

Answer

MV = F(1 - dt)

Answer

MV = FV - I

Answer

MV = P(1 + rt)

Question 11

If a simple interest note has a face value of Php 25,000 and an interest rate of 16%, what is the maturity value after 104 days?

Accepted Answer

Php 26,155.56

Answer

Php 25,500.00

Answer

Php 28,000.00

Answer

Php 27,000.00

Question 12

In a bank discount note, what does the proceeds represent?

Accepted Answer

The sum of money actually received by the maker

Answer

The interest charged in advance

Answer

The total amount to be repaid

Answer

The face value of the note

Question 13

How is the interest charged in advance (I) calculated for a bank discount note?

Accepted Answer

I = Fdt

Answer

I = F(1 - dt)

Answer

I = MV - FV

Answer

I = FV(1 + rt)

Question 14

f the proceeds from a bank discount note is Php 7,200 and the face value is Php 8,000, what is the interest charged in advance?

Accepted Answer

Php 800

Answer

Php 1,200

Answer

Php 1,000

Answer

Php 600

Question 15

What is the interest rate (r) if the maturity value of a simple interest note is Php 36,800 and the face value is Php 35,325.00?

Accepted Answer

10%

Answer

16%

Answer

15%

Answer

12%

Question 16

What is the formula to compute the proceeds (P) from a bank discount note?

Accepted Answer

P = F(1 - dt)

Answer

P = MV + I

Answer

P = FV(1 + rt)

Answer

P = F - I

Question 17

What is the formula for the final amount in compound interest?

Accepted Answer

F = P(1 + i)^n

Answer

F = P(i + n)

Answer

F = P + I

Answer

F = P(1 - i)^n

Question 18

If the nominal rate is 8% and compounded semi-annually, what is the interest rate per period?

Accepted Answer

0.04

Answer

0.02

Answer

0.06

Answer

0.08

Question 19

How many conversion periods are there in one year if the interest is compounded quarterly?

Accepted Answer

4

Answer

2

Answer

12

Answer

1

Question 20

If P = 5,000, i = 0.03, and n = 8, what is the final amount F?

Accepted Answer

6,333.85

Answer

6,533.85

Answer

6,353.85

Answer

6,555.85

Question 21

What is the total number of conversion periods for 1.5 years with semi-annual compounding?

Accepted Answer

3

Answer

6

Answer

4

Answer

2

Question 22

What is the frequency of conversion for semi-annual compounding?

Accepted Answer

2

Answer

12

Answer

4

Answer

1

Question 23

What does 't' represent in the compound interest formulas?

Accepted Answer

Number of years

Answer

Principal amount

Answer

Total amount

Answer

Interest rate

Question 24

If the nominal rate is 12% and compounded quarterly, what is the interest rate per period?

Accepted Answer

0.03

Answer

0.04

Answer

0.06

Answer

0.12

Question 25

What is an annuity?

Accepted Answer

A series of equal periodic payments

Answer

A series of unequal payments

Answer

A loan with interest

Answer

A one-time payment

Question 26

What type of annuity has payments that coincide with the interest conversion period?

Accepted Answer

Simple Annuity

Answer

General Annuity

Answer

Ordinary Annuity

Answer

Contingent Annuity

Question 27

Which type of annuity has no fixed terms?

Accepted Answer

Contingent Annuity

Answer

Annuity Due

Answer

Deferred Annuity

Answer

Annuity Certain

Question 28

In an ordinary annuity, when are payments made?

Accepted Answer

At the end of each interval

Answer

At random intervals

Answer

Only once at the end

Answer

At the beginning of each interval

Question 29

What is an annuity due?

Accepted Answer

Payments made at the beginning of each interval

Answer

Payments made at the end of each interval

Answer

Payments made only once

Answer

Payments made at random times

Question 30

How is the present value of annuity dues calculated?

Accepted Answer

By adding the first payment to the present value of ordinary annuity

Answer

By dividing the total payments by the number of intervals

Answer

By subtracting the first payment from the total amount

Answer

By multiplying the total payments by the interest rate

Question 31

What defines a deferred annuity?

Accepted Answer

Payments start after a specified time

Answer

Payments start immediately

Answer

Payments are made at random intervals

Answer

Payments are made only once

Question 32

What does the variable R represent in annuities?

Accepted Answer

The periodic payment

Answer

The interest rate

Answer

The total amount

Answer

The present value

Question 33

What is the term for the time from the beginning of the term to the end of the last payment?

Accepted Answer

Term of the Annuity

Answer

Payment Interval

Answer

Maturity

Answer

Duration

Question 34

What is the payment interval in an annuity?

Accepted Answer

The time between each payment

Answer

The time until the last payment

Answer

The total duration of the annuity

Answer

The time until the first payment

Question 35

What does the time value of money imply?

Accepted Answer

Receiving money today is worth more than receiving it in the future

Answer

Money can only be invested for one year

Answer

Money loses value over time

Answer

Money has the same value regardless of time

Question 36

How is the value of an obligation computed if it is to the left of the focal date?

Accepted Answer

It is accumulated

Answer

It is ignored

Answer

It is multiplied by the interest rate

Answer

It is discounted

Question 37

What does the term 'Values of Obligations' refer to?

Accepted Answer

A set of specified payments on designated dates

Answer

The total amount of money owed

Answer

The total expenses of a business

Answer

The interest accrued on loans

Question 38

What is the purpose of discounting in financial mathematics?

Accepted Answer

To determine the present value of a future amount

Answer

To find the future value of an amount

Answer

To calculate the total interest

Answer

To track payments

Question 39

What does amortization of a debt mean?

Accepted Answer

Extinction of the debt by equal payments

Answer

Increasing the debt amount

Answer

Paying only the interest

Answer

Transferring the debt to another party

Question 40

What is the present value of an annuity in relation to amortization?

Accepted Answer

The original amount of debt or loan

Answer

The total amount of interest paid

Answer

The future value of the debt

Answer

The total number of payments

Question 41

What does the term 'par value' refer to?

Accepted Answer

The value printed on a stock certificate

Answer

The total number of shares

Answer

The total dividends paid

Answer

The market value of a stock

Question 42

How is a stockholder's share of the company's earnings calculated?

Accepted Answer

Based on the par value and dividend rate

Answer

Based on the number of employees

Answer

Based on the total assets of the company

Answer

Based on the market value

Question 43

What are bonds considered to be?

Accepted Answer

Loans made to organizations

Answer

Shares of stock

Answer

Equity in a company

Answer

Dividends paid to stockholders

Question 44

What is the purpose of amortization?

Accepted Answer

To discharge liabilities through payments

Answer

To determine stock ownership

Answer

To calculate dividends

Answer

To increase the debt amount

Question 45

What does the term 'dividend rate' refer to?

Accepted Answer

The percentage of profit paid to stockholders

Answer

The par value of a bond

Answer

The total number of shares

Answer

The market value of a stock

Chapter 2 GenMath Quiz

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