Gen. Math Summative Part 1

DIRECTION: Choose the letter of the correct answer. Who is the person or institution that invests the money or makes the funds available?

• Borrower

• Lender

• Debtor

• Principal

The date on which the money borrowed, or loan is to be completely repaid is called:

• Loan Date

• Maturity Date

• Origin Date

• Future Value

Which of the following best describes a simple annuity?

• Payment interval is longer than the interest period

• Payment interval is shorter than the interest period

• Payment is made at the beginning of each period

• Payment interval is the same as the interest period

A general annuity differs from a simple annuity because:

• Payments do not earn interest

• Payments are fixed and equal

• Payments are always made at the end of the interval

• Payment interval and interest period are not the same

Which statement is true about the difference between ordinary annuity and annuity due?

• Ordinary annuity = payments at beginning, Annuity due = payments at end

• Both have payments at the same time

• Ordinary annuity = payments at end, Annuity due = payments at beginning

• Both have no fixed payment time

Maria borrowed ₱2,000 from her classmate at 5% simple interest per year. How much interest will she pay after 2 years?

How long will it take ₱15,000 to earn ₱9,000 at 10% simple interest?

Mr. Cruz invested ₱25,000 at 8% simple interest per annum. After how many years will the interest be ₱10,000?

If the simple interest on a loan is ₱2,400 for 3 years at 8% per annum, what is the principal?

Find the future value of ₱10,000 invested for 2 years at 10% compounded annually.