General Mathematics Quiz

Which statement below best explains the difference between simple interest and compound interest?

• Simple interest pays out less than compound interest.

• Simple interest increases each year while compound interest remains constant.

• Simple interest is calculated yearly, while compound interest is calculated only at the end of the investment period.

• Simple interest is calculated using the principal only while compound interest is calculated using both the principal and total past interest.

Mara invested 10,000 in a bank account that offers 5% annual interest. She can choose between the following: Option A: Simple Interest for 3 years Option B: Compound Interest for 3 years, compounded annually. Which option will give her more interest, and by how much?

• Compound Interest gives more interest by $76.25.

• Simple Interest gives more interest by $76.25.

• Compound Interest gives more interest by $500.

• Simple Interest gives more interest by $500.

Suppose you wanted to invest money and you do not intend to withdraw it within two years, which bank offer would you prefer?

• a bank with 2% compounded interest quarterly.

• a bank with 3% compounded interest semi-annually.

• a bank with 4% compounded interest per annum.

• a bank with 5% simple interest per annum.

Which of the following descriptions of the debtor or borrower is correct?

• It is an individual who invest the money or provides the funds.

• It is the total sum borrowed or invested as of the date of origin.

• It is an individual who obtains the funds from the lender or who owes the money.

• It is the interest calculated using both the principal and the total accumulated previous interest.

What is the formula of finding the present value?

• P = I/s rt

• P = F/(1+r)^t

• P = rt/I/s

• P = F(1+r)^t

How much is the present value?

• ₱20, 432.75

• ₱22, 307.15

• ₱23, 558.06

• ₱25,000.00

How much is the interest after 3 years?

• ₱ 1,167.25

• ₱ 1,441.94

• ₱ 1,530.20

• ₱ 1,999.75

What formula will be used to determine the maturity value?

• F = P(1 + j)^mt

• F = I*c(1 + j)^n

• F = I/s rt

• F = P/(1+m)^t

What will be the interest after 5 years if he borrows from Taysan Cooperative Bank?

• ₱ 2,812.53

• ₱ 9,668.97

• ₱ 16,431.54

• ₱ 36,221.32

After 5 years, which bank will give her the higher return, and by how much?

• San Jose Rural Bank; ₱817.34 more than Taysan Cooperative Bank.

• Taysan Cooperative Bank; ₱817.34 more than San Jose Rural Bank.

• San Jose Rural Bank; ₱1,572.89 more than Taysan Cooperative Bank.

• Taysan Cooperative Bank; ₱1,572.89 more than San Jose Rural Bank.