General Mathematics: Math of Investment and Logic

Alex deposits ₱2,500 in a savings account that pays 4% simple interest per year. How much will he have after 6 years?

• ₱3,000

• ₱2,900

• ₱3,100

• ₱3,200

Compare the total interest earned on a ₱1,000 investment over 3 years with a 5% simple interest and a 5% compound interest. Which one gives a higher amount and by how much?

• Simple interest by ₱7.63

• Compound interest by ₱7.63

• Simple interest by ₱5.00

• Compound interest by ₱5.00

Find the future value of a ₱3,000 investment for 6 years at a 7% compound interest rate compounded semi-annually.

• ₱4,520.13

• ₱4,400.00

• ₱4,700.55

• ₱4,650.28

If Emma invests ₱2,000 at an annual compound interest rate of 5% for 3 years, what is the total amount of interest earned?

• ₱315.25

• ₱307.50

• ₱300.00

• ₱325.50

Calculate the annual payment for an annuity that aims to accumulate ₱20,000 over 10 years at an interest rate of 5%.

• ₱1,801.36

• ₱1,624.22

• ₱1,636.62

• ₱1,742.73

Jane wants to save ₱50,000 in 15 years by making annual payments in an annuity with an interest rate of 5%. How much should her annual payments be?

• ₱2,526.27

• ₱2,329.04

• ₱2,424.72

• ₱2,620.36

John wants to save ₱30,000 for his child's education fund by making monthly deposits for 18 years at an interest rate of 5% compounded monthly. What should his monthly deposit be?

• ₱89.15

• ₱92.50

• ₱90.85

• ₱91.00

Compare the future value of an annuity with quarterly payments of ₱400 for 8 years at an interest rate of 5% compounded quarterly, with another annuity with quarterly payments of ₱400 for 8 years at 6% compounded quarterly. Which annuity has a higher future value?

• The first annuity by ₱1,234.12

• The second annuity by ₱1,356.42

• The first annuity by ₱1,467.34

• The second annuity by ₱1,452.21

Which of the following best describes the primary market for stocks?

• A market where new stock issues are sold to investors.

• A market where existing stocks are bought and sold between investors.

• A market for long-term debt securities.

• A market for short-term debt securities.

Calculate the current price of a bond that pays an annual coupon of ₱50, has a face value of ₱1,000, and has 5 years to maturity with a required return of 5%.

• ₱1,000.00

• ₱950.00

• ₱1,050.00

• ₱1,025.00