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BM Topic 1 Quiz

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

The date on which money is received by the borrower

a)

Origin or Loan Date

b)

Time

c)

Repayment Date or Maturity Date

d)

Annually

2.

The amount of money borrowed or invested on the origin date.

a)

Principal (P)

b)

Simple Interest

c)

Interest (I)

d)

Maturity Value or Future Value

3.

Amount paid or earned for the use of money

a)

Coupon

b)

Simple Interest

c)

Interest (I)

d)

Compound Interest

4.

Interest is computed on the principal and then added to it.

a)

Coupon

b)

Simple Interest

c)

Interest (I)

d)

Compound Interest

5.

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

a)

Interest

b)

Simple Interest

c)

Compound Interest

d)

Total Amount

6.

The annual rate, usually in percent, charged by the lender, or rate of increase of the investment

a)

Principal (P)

b)

Rate (r)

c)

Interest (I)

d)

Maturity Value or Future Value (F)

7.

A bank offers a 0.25% annual simple interest rate for a particular deposit. After a year RM2,500 will be earned from RM1 million deposited. What is the interest?

a)

2450

b)

5050

c)

2500

d)

4500

8.

A bank offers a 0.25% annual simple interest rate for a particular deposit. After a year RM2,500 will be earned from RM1 million deposited. What is the principal amount?

a)

1 Million

b)

2 Million

c)

500k

d)

3 Million

9.

A bank offers a 0.25% annual simple interest rate for a particular deposit. After a year RM2,500 will be earned from RM1 million deposited. How many years it takes to earn an interest of RM2,500 .

a)

2 Years

b)

3 Years

c)

5 Years

d)

1 Years

10.

How long will RM1 Million earn a simple interest of 100,000 at 1% per annum?

a)

10 Years

b)

11 Years

c)

6 Years

d)

12 Years

11.

Mr. Supi aims to have his investment grow to RM500,000 in 4 years. how much should he invest in an account that pays 5% compounded annually?

a)

411,351.24

b)

607,753.13

c)

745,212.90

d)

554,567.89

12.

Accumulated amount is refer to

a)

Interest and Principal

b)

Total Interest

c)

Total Principal

d)

Interest plus Principal

13.

Mortgage loan is known as

a)

Car Loan

b)

Property Loan

c)

Personal Loan

d)

Credit card

14.

FD uses what method to calculate the interest

a)

Compund Interest

b)

Simple Interest

c)

Simple and Compund

d)

Reducing Balance

15.

Which method will give you more interest?

a)

Reducing Balance

b)

Simple interest

c)

Compund Interest

d)

Mortgage

16.

Do simple interest will give low interest?

a)

Yes

b)

No

17.

RM12500 received in long term investment for 10years at 4.57% using compounding method what will be amount invested?

a)

23,189.50

b)

35,500

c)

22,186.59

d)

30,457.89

18.

Which method bank will use to calculate the interest?

a)

Simple Interest and reducing balance

b)

Compound Interest

c)

Reducing Balance and Compound

d)

Simple & Compund Interest and reducing balance

19.

Who is the most handsome lecturer in the college?

a)

Mr Suppiah

b)

Mr Raj

20.

Invest Rm50500 in a fixed deposit for 5 years to earn Rm8000 what will be the rate of return?

a)

4%

b)

5.56%

c)

3.12%

d)

3.17%