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Chapter 2: Consumer Mathematics (Concepts)

Total questions: 7

Worksheet time: 80secs

Name
Class
Date
1.

What is the formula for calculating simple interest?

a)
  • I=P+r+t

b)
  • I=P×r×t

c)
  • I=P÷r+t

d)
  • I=P×(1+r)t

2.


In compound interest, interest is calculated on which of the following?

a)

Only the initial principal amount

b)

Only the interest earned

c)

The initial principal and accumulated interest

d)

Only the time period

3.

If you invest Php10,000 at 5% simple interest, how much will you earn per year, every year?

a)

500

b)

50

c)

1000

d)

100

4.

What is the average daily balance?

a)

The balance at the beginning of each month

b)

The balance at the end of each month

c)

The sum of the balances at the end of each day divided by the number of days

d)

The total balance over a year divided by 365

5.

Which of the following is NOT true about Money Market?

a)

Lower minimum balance requirements

b)

Pays higher interest

c)

Higher minimum balance requirements

d)

Limits withdrawals per month

6.

What does a stock represent?

a)

A loan to the company

b)

Fixed interest payment

c)

A government bond

d)

Ownership in a company

7.

Bonds are primarily known for:

a)

Providing ownership in a company

b)

High-risk investments

c)

High potential for capital appreciation

d)

Fixed interest payments and lower return of principal