Interest Calculations and Investment Concepts

The video tutorial by Teacher Daisy covers consumer mathematics, focusing on savings, investments, and banking. It explains different types of bank accounts, interest calculations, and introduces Islamic banking. The video also covers investment types, return on investment (ROI), and cost averaging strategies.

What are the main topics covered in the Consumer Mathematics chapter?

• Algebra and Geometry

• History and Geography

• Physics and Chemistry

• Savings, Investments, Credit, and Debt

What is the primary benefit of a savings account?

• Overdraft facility

• High interest rates

• Ability to withdraw money anytime

• No service charges

How is simple interest calculated?

• I = PRT/100

• I = PRT

• I = PRT/12

• I = P + RT

What is the key difference between simple and compound interest?

• Simple interest is higher than compound interest.

• Compound interest is only for short-term savings.

• Simple interest is calculated on the principal only, while compound interest is calculated on the principal and accumulated interest.

• Simple interest requires monthly compounding.

What principle is Islamic banking based on?

• Islamic law and profit sharing

• Fixed interest rates

• Risk-free investments

• Interest maximization

Which of the following is NOT a type of investment discussed?

• Unit Trust

• Cryptocurrency

• Shares

• Real Estate

What is ROI?

• Rate of Inflation

• Return on Income

• Rate of Interest

• Return on Investment

Which factor does NOT affect ROI in real estate?

• Weather conditions

• Location

• Political situation

• Economic situation

What is the main advantage of the cost averaging strategy?

• It guarantees high returns.

• It reduces the average cost of shares over time.

• It eliminates all investment risks.

• It requires a large initial investment.