ALS 11 - SHS

What interest remains constant throughout the investment term?

• simple

• compound

• annuity due

• ordinary annuity

It is an interest computed based on the principal amount.

• simple

• compound

• annuity due

• ordinary annuity

What is the difference between simple and compound interest?

• Simple yields higher interest than compound interest.

• Simple interest has a shorter term than compound interest.

• Simple interest is always better than compound interest.

• Simple interest is computed based on the principal while compound interest is computed based on the principal and also on the accumulated past interests.

Which of the following statement is true about the borrower or debtor?

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

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

• It refers to the person (or institution) who owes the money or avails of the fund from the lender.

• It refers to the person (or institution) who invests the money or makes the funds available.

Which of the following formula can be used to solve for the simple interest? a. c. b. d.

• I = Prt

• A= P(1 + rt)

• SI = (Prt)/ 100

• All of the above

It is an amount after t years that the lender receives from the borrower on the maturity date.

• loan date

• maturity date

• maturity value

• term

Which of the following describes time or term?

• It is the date on which money is received by the borrower.

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

• It is the date of which the money borrowed or loan is to be completely repaid

• It is the amount of time in years the money is borrowed or invested; length of time between the origin and maturity dates

In the formula, I= Prt, what is r?

• revenue

• real value

• repaid

• rate of interest

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

• future value

• maturity value

• principal value

• repayment value

A person (or institution) who invests the money or makes the funds available.

• lender

• creditor

• lender and creditor

• none of the choices given