Review for 2nd Quarter

What is the formula for calculating simple interest?

• A= P(1 + rt)

• Ic=P(1+rn)nt−P

• Is= Prt

• A=P(1+r100)t

If a principal of ₱1 000 is invested at a simple interest rate of 5% per year, how much interest will it earn in 3 years?

• ₱50

• ₱100

• ₱150

• ₱200

Which of the following statements is true about simple interest?

• it is compounded annually

• it is based only on the original principal amount

• it varies depending on the time period

• it depends on the compound rate

If ₱500 is invested at 8% compounded annually for 2 years, what is the final amount? (Use the compound interest rate formula: A= P(1+r100)t)

• ₱540.00

• ₱583.20

• ₱600.00

• ₱620.00

What is the main difference between simple interest and compound interest?

• Simple interest is calculated on both the principal and interest, while compound interest is only calculated on the principal.

• Simple interest is calculated only on the principal, while compound interest is calculated on both the principal and previous earned interest.

• Simple interest is higher than compound interest.

• There is no difference.

At what rate of simple interest will a sum of ₱1200 double itself in 10 years?

• 5%

• 8%

• 10%

• 15%

If a principal of ₱2,000 is compounded quarterly at an interest rate of 4% per annum, what will be the amount after 1 year? (Use A= P(1+rn)nt with n=4)

• ₱2,080.00

• ₱2,082.43

• ₱2,104.64

• ₱2,108.16

Which interest type typically results in a larger amount over the same period, given the same principal and interest rate?

• Simple Interest

• Compound Interest

• Both result in the same amount

• It depends on the interest rate

A principal of ₱3,000 grows to ₱3,456 in 2 years at compound interest. What is the approximate annual interest rate?

• 5%

• 6%

• 7%

• 8%

If the compound interest rate for a certain amount at 10% per annum for 2 years is ₱210, what is the principal?

• ₱1,000

• ₱1,050

• ₱1,200

• ₱1,500