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WorksheetsGenMath_Quarter 2 Review Quiz
Total questions: 20
Worksheet time: 10mins
A person/institution who invests the money or make the fund available.
a. borrower/ debtor
b. lender/ creditor
c. Principal (P)
d. Rate (r)
Rate of interest must be converted into before substituting to the formula of finding the interest.
fractions
decimals
mixed numbers
percentage
Ray’s parents begin making a monthly payment of Php500 into an account paying 2.4% compounded monthly. Payments begin on her 10th birthday.
15
60
30
75
Which of the following is not a component in the calculation of simple interest?
Time
Rate
Principal
Compounding frequency
Annual payments of P2,500 for 24 years that will start 12 years from now. What is the period of deferral in the deferred annuity?
12 periods
11 periods
10 periods
13 periods
It is a time between the purchase of an annuity and the start of the payments for the deferred annuity.
Present value of a deferred ordinary annuity
General Ordinary Annuity
Period of Deferral
Deferred Annuity
What is another term for stock?
Bond
Equity instrument
Debenture
Debt Instrument
What is the other term for fair market value?
Present value of general annuity
Economic Value
Future value of general annuity
Cash Flow
Why do people buy stocks?
There is no chance of a loss.
The government encourages them to buy stock.
They expect to earn a return.
There is no chance of a loss.
Diversifying can occur by _
buying different stocks and bonds in the same industries.
buying different stocks and bonds in different industries.
buying similar stocks and bonds in different industries.
buying similar stocks and bonds in the same industries.
Installment payment for an appliance at the end of each month with interest compounded monthly is an example of what type of annuity?
Ordinary Annuity
Simple
Annuity Due
General
It is a type of stock for which stockholders get first choice in distributed profits.
Stock market
face value stock
preferred stock
Common stocks
Which financial assets carries the most risk?
stocks
Bond
savings deposit
zero-coupon bond
Which of the following statements DOES NOT refer to annuities?
Once the payout period begins, the annuitant receives periodic payments
Annuities do not use the pooling technique to spread risk
The accumulation period is the period prior to the annuitization date
An owner may change the annuity date, the beneficiary, or settlement option
What do you call the payment in an annuity?
Present Value
Future Value
Periodic Payment
Interest
Which best defines the risk of a financial asset?
The amount that will be repaid at the end of a bond’s term.
Investing in several different assets with unrelated risks.
The uncertainty that an asset might gain or lose value.
The probability that an asset will lose value.
What is stock portfolio?
The document that you receive for purchasing stock.
A group of stocks that you can purchase at one time on a stock exchange.
The online tool used to track stock prices.
A list of all the stocks you own.
What type of annuity is represented if the payment is made at the end of each month for money borrowed that charge 0.15% interest compounded quarterly?
Ordinary
General
Annuity due
Simple
Find the future value of an ordinary annuity with a regular payment of P1,000 5% interest rate compounded quarterly for 3 years.
P12860.36
P12806.63
P12860.63
P12806.36
Several years ago, Company A issued bonds to raise funds so that it could buy equipment. Those bonds were purchased by the Bank of the East. However, the Bank of the East has decided that it doesn’t want to have any assets in the form of bonds, so it is selling off all the bonds that it owns. Which of the following is most likely to be the result of this action?
The default risk of the bonds will increase.
Bond prices will increase.
Interest rates will increase.
Bond prices will decrease.
