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General Mathematics - Simple and Compound Interest

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

(a)   is the interest earned when a loan or investment is repaid in a lumpsum.

2.

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

3.

Rate of interest must be converted into (a)   before substituting to the

formula of finding the interest.

4.

Which of the following describes rate (r)?

a)

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

b)

It is the amount paid or earned for the use of money.

c)

It is charged by the lender, or rate of increase of the investment

d)

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

5.

All of the following are used to find simple interest, EXCEPT?

a)

principal

b)

rate of interest

c)

time

d)

future value

6.

It is computed on the original principal, the interest due after a certain time.

a)

Simple interest

b)

Principal

c)

Compound interest

d)

Final Amount

7.

It is the term of period of the loan.

a)

Rate

b)

Interest

c)

Principal

d)

Time

8.

It is the cost of using money expressed as percentage of the principal for a given period of time.

a)

Principal

b)

Time

c)

Rate

d)

Interest

9.

It is the amount borrowed/lent/loan/invested.

a)

Principal

b)

Time

c)

Rate

d)

Interest

10.

In the formula, I= Prt, what is r?

a)

revenue

b)

real value

c)

rate of interest

d)

repaid

11.

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.

12.

Which of the following describes time or term?

a)

It is the date on which money is received by the borrower.

b)

It is the amount of time in years the money is borrowed or invested; length of time between the origin and maturity dates

c)

It is the date of which the money borrowed or loan is to be completely repaid

d)

It is the amount paid or learned for the use of money.

13.

Which of the following illustrates the simple interest formula?

a)

P=P x r x t

b)

SI=P x r x t

c)

FV=P(1+rt)

d)

MV=F+I

14.

The correct formula to calculate the interest portion of a fixed rate loan payment is ________.

a)

FV = P + I

b)

A = P(1+r/n )^nt

c)

I = P x t x t

d)

None of the above

15.

Which of the following formula can be used to solve for the simple interest?

a)

I = Prt

b)

SI = Prt100

c)

A= P(1 + rt)

d)

All of the above

16.

Given that P = ₱5,250, r = 1.25% and t = 5 years, find the simple interest.

a)

₱32,812.50

b)

₱3,281.25

c)

₱328.13

d)

₱32.82

17.

Given that P = ₱10,500, r = 4 1/2% and t = 8 months, find the simple interest.

a)

₱315.00

b)

₱3,150.00

c)

₱3,780.00

d)

₱31,500.00

18.

Which of the following described to formula 𝐼𝑠=𝑃𝑟𝑡 ?

a)

simple interest

b)

compound interest

c)

present value

d)

maturity value

19.

Given that P = ₱15,250, r = 3.25% and t= 3 years, find the simple interest.

a)

₱24,868.80

b)

₱14,868.80

c)

₱1,486.88

d)

₱148.69

20.

Given that I P = ₱20,820, r = 2 1/4% and t = 9 months, find the simple interest.

a)

₱ 351.34

b)

₱ 3513.38

c)

₱ 4,216.05

d)

₱ 42160.50