General Mathematics Quiz

Compound interest is favorable to the following except?

• investor of a retirement fund

• person who saves in bank

• investor of stocks

• borrower of a loan

Which of the following will yield a higher interest?

• Investing in a bank that offers a simple interest rate of 10% annually for 2 years

• Investing in a cooperative that offers an interest rate of 10% compounding annually for 2 years

• Saving money in a piggy bank for 2 years

• Both a and b

What formula can be used to find maturity (future) value of a compound interest?

• F = P + I

• Both a and b

• F = (1 + ?) ?

• None of the choices.

What interest is computed on the principal and also on the accumulated past interests?

• simple

• annuity due

• compound

• ordinary Annuity

Which of the following can be used to find compound interest?

• I = F - P

• P = F (1+r) t)

• F= P(1+r)t

• I = Prt

Which interest is computed on the principal and then added to it?

• simple

• annuity due

• compound

• ordinary annuity

The simple interest formula is I = Prt. What does the t represent?

• principle

• interest

• time

• percent rate

All of the following are used to find simple interest, EXCEPT?

• principal

• time

• rate of interest

• future value

It is the amount after t years that the lender will receive from the borrower.

• future Value

• interest

• present Value

• principal

Which of the following describes rate (r)?

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

• It is the amount paid or earned for the use of money.

• It is charged by the lender, or rate of increase of the investment

• It is computed on the principal and also on the accumulated past interests.