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WorksheetsMAT101 Summary of Module 2
Total questions: 15
Worksheet time: 8mins
It is defined as the interest resulting from the periodic addition of simple interest to the principal.
Compound Interest
Simple Interest
Interest Between Dates
Exact Interest
Ordinary Interest
Determine what is asked in the problem:
Compute for the interest, for 3 years, of an investment amounting to 50 000 pesos if the simple interest rate is 3%.
Simple Interest
Compound Interest
Compounded Amount
Final Amount
Determine what is asked in the problem:
Compute for the interest, for 3 years, of an investment amounting to 50 000 pesos if the rate is 3% compounded annually.
Simple Interest
Compound Interest
Compounded Amount
Final Amount
How many is the number of conversion periods in a year, m, in the problem:
Compute for the interest, for 3 years, of an investment amounting to 50 000 pesos if the rate is 3% compounded annually.
1
2
3
4
How many is the total number of conversion periods in the whole investment term, n, in the problem:
Compute for the interest, for 3 years, of an investment amounting to 50 000 pesos if the rate is 3% compounded annually.
1
2
3
4
What is the value of the periodic rate, i, in the problem:
Compute for the interest, for 3 years, of an investment amounting to 50 000 pesos if the rate is 12% compounded every 3 months.
3%
4%
6%
12%
What is the value of the nominal rate, J, in the problem:
Compute for the interest, for 3 years, of an investment amounting to 50 000 pesos if the rate is 12% compounded every 3 months.
3%
4%
6%
12%
What is the value of the effective rate, e, in the problem:
Compute for the interest, for 3 years, of an investment amounting to 50 000 pesos if the rate is 12% compounded every 3 months.
12.48%
12.49%
12.00%
12.55%
Solve the problem.
What nominal rate compounded semi-annually will yield an effective rate of 3%.
2.79%
2.98%
2.96%
3%
What do you call two rates that will produce the same interest on the same principal over the same period of time?
Nominal Rate
Effective Rate
Periodic Rate
Equivalent Rates
Determine what is asked in the problem:
What simple interest rate equivalent to 5% compounded monthly will produce the same interest after 5 years?
rc
rs
eq
J
Determine what is asked in the problem:
What interest rate compounded monthly is equivalent to 5% simple interest rate if the term of invest is 4 years?
rc
rs
eq
J
Determine what is asked in the problem:
If you are to invest a certain sum of money at 4% compounded quarterly for 4 years, what rate compounded semi-annually could you as well invest your money?
rc
rs
eq
J
What is the value of the conversion period of the missing rate, me, in the problem:
If you are to invest a certain sum of money at 4% compounded quarterly for 4 years, what rate compounded semi-annually could you as well invest your money?
4
2
1
12
What is the value of the conversion period of the missing rate, m, in the problem:
If you are to invest a certain sum of money at 4% compounded quarterly for 4 years, what rate compounded semi-annually could you as well invest your money?
4
2
1
12
