Final Exam in General Mathematics

What is the formula for calculating the future value of a simple annuity?

• F=R((1+j)n-1j)

• F=P(1+rt)

• F=R(1-(1+j)nj)

• F=R(1-(1+j)-nj)

Which of the following statements illustrates simple interest?

• It is the interest paid or earned for the use of money

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

• It is the interest that is computed on the principal and then added to it

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

Which of the following shows compound interest?

• Principal=P 1,000 term= 2 years rate= 5% Interest= P 100

• Principal=P 1,500 term= 2 years rate= 10% Interest= P 300

• Principal=P 1,000 term= 3 years rate= 5% Interest= P 158

• Principal=P 1,500 term= 3years rate= 10% Interest= P 1, 997

Interest is computed on the principal and also on the accumulated past interest.

• Simple Interest

• Principal

• Compound interest

• Maturity value

Which of the following best explains why compound interest results in a larger amount than simple interest, even when the rate and time are the same?

• Compound interest uses a higher interest rate than simple interest.

• Compound interest includes interest on previously earned interest, while simple interest only applies to the principal.

• Simple interest only works for small investments, while compound interest works for large investments.

• Compound interest requires interest to be paid more frequently than simple interest.

Which of the following is the correct formula for calculating Simple Interest (SI)?

• IS=Prt

• IS=P(1+rt)

• IS=P+r+t

• IS=Prt100

John invested P1,000 at an interest rate of 5% per year for 3 years in a simple interest account. Which of the following explains how to calculate the total interest earned?

• Multiply P1,000 by 3 and add 5%.

• Divide P1,000 by 5% and multiply by 3.

• Multiply P1,000 by 5% and then multiply by 3.

• Divide P1,000 by 3 and then add 5%.

Find the interest if P 50, 000 is invested at 5% compounded annually for 8 years.

• P 23, 782.77

• P 23, 827.77

• P 23, 879. 77

• P 23, 872.77

How much money you will have after 4.25 years if you deposited P10,000 in a bank that pays 0.5% simple interest?

• P 10,212.50

• P 10,212.00

• P 10,212.25

• P 10,212.05

Find the interest earned of a loan of P65,000 if the loan is given at a rate of 20% and is due in 3 years.

• P 40,000

• P 39,000

• P 41,000

• P 39,500