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General Mathematics - Business Math

Total questions: 10

Worksheet time: 9mins

Name
Class
Date
1.

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

a)

loan date

b)

maturity date

c)

maturity value

d)

term

2.

It refers to an interest that is computed based on the principal and interest accumulated every conversion period.

a)

Simple

b)

Compound

c)

Annuity Due

d)

Ordinary Annuity

3.

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

a)

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

b)

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

c)

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

d)

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

4.

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

a)

Lender

b)

Creditor

c)

Both a and b

d)

None of the choices.

5.

Tell whether the given situation shows SIMPLE or COMPOUND interest.


Nathan deposits Php 55,000.00 in a bank. The bank paid him an interest of 3% (or P1,650.00) annually. After a year, he got back an amount of Php 56,650.

a)

Simple

b)

Compound

6.

Tell whether the given situation shows SIMPLE or COMPOUND interest.


Diego borrowed P10,000 from a lending institution at an annual rate of 6%. He paid a total interest of P2,400 in 4 years.

a)

Simple

b)

Compound

7.

Tell whether the given situation shows SIMPLE or COMPOUND interest.


Sara deposited in her bank account P50,000 at an annual interest rate of 1% compounded yearly. She earned an interest of P2,550.50 after 5 years.

a)

Simple

b)

Compound

8.

Tell whether the given situation shows SIMPLE or COMPOUND interest.


Sandy invested P24,000 in a stock portfolio that earns 7% interest per month. She earned P16,800 after the first month and P17,976 after the second month, for a total of P34,776 for 2 months.

a)

Simple

b)

Compound

9.

Variable P in simple interest formula when you are the creditor stands for?

a)

Original Amount borrowed

b)

Original Amount invested

c)

Maturity Amount Borrowed

d)

Maturity Amount invested

10.

Compound interest is favorable to the following except?

a)

investor of a retirement fund

b)

person who saves in bank

c)

investor of stocks

d)

borrower of a loan