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Worksheets

EECOL30_OMDE

Total questions: 45

Worksheet time: 48mins

Name
Class
Date
1.

Find the Exact time from 27 Oct 2020 to 12 Dec 2020.

a)

44 days

b)

45 days

c)

46 days

d)

47 days

2.

Given
P is the principal of investment,
r is the interest rate per annum,
t is the investment period,
What is the formula for maturity value of the investment?

a)

I=PrtI=\Pr t  

b)

S=PrtS=\Pr t  

c)

S=P(1rt)S=P\left(1-rt\right)  

d)

S=P(1+rt)S=P\left(1+rt\right)  

3.

Ali saved RM1,000 on 1 Feb 2020 which is offered 5.5% simple interest rate for 45 days. Calculate the interest earned (Exact time and ordinary simple interest).

a)

RM2475

b)

RM6.88

c)

RM6.78

d)

RM6.76

4.

Amil deposited RM1400 which offered 5% simple interest rate per annum for 5 years 9 months. State the period in years

a)

5.9

b)

5.75

c)

RM1400

d)

5%

5.

Given the maturity date of an investment is 24 June 2020. Find the date of saving if saving period is 60 days.

a)

24 April 2020

b)

25 April 2020

c)

26 April 2020

d)

27 April 2020

6.

What is the simple interest on a housing loan of P350,000, over 30 years with a rate of 4.5%?

a)

P350,00

b)

P47,250

c)

P350,000

d)

P472,500

7.

What does the T in I =PRT means?

a)

time

b)

kind of loan

c)

temperature

d)

multiplication

8.

You take out a car loan. How much will you pay in total for the car, if your loan is for $8000, at a rate of 5% interest, over 3 years?

a)

P1,200

b)

P120

c)

P920

d)

P9,200

9.

What is the interest on a savings account at a rate of 2%, given a starting amount of P575, over 1 year's time?

a)

P115

b)

P586.50

c)

P11.50

d)

P1.50

10.

Emilio borrows P1,200 from a bank at a rate of 8% per year. How much will he have to pay back in total after 2 years?

a)

P150

b)

P192

c)

P1350

d)

P1392

11.

This is an interest resulting from the periodic addition of simple interest to the principal amount.

a)

simple interest

b)

interest in advance

c)

compound interest

12.

When interest is compounded quarterly, then how many times is interest compounded in a year?

a)

four times

b)

three times

c)

two times

13.

If interest is compounded semiannually for 5 years, then what is the total number of conversion period?

a)

60

b)

12

c)

10

14.

What do you call the interest rate when compounded annually?

a)

nominal

b)

ordinal

c)

effective

15.

What is the formula in finding the compound amount?

a)

Fc=P(1+rm)tmF_c=P\left(1+\frac{r}{m}\right)^{tm}

b)

Fc=P(1+rm)tmF_c=P\left(1+rm\right)^{tm}

c)

Fc=P(1+rm)tF_c=P\left(1+\frac{r}{m}\right)^t

16.

The periodic rate can be computed using the formula

a)

rmrm

b)

r+mr+m

c)

rm\frac{r}{m}

17.
Your 6 year investment of $40,000 at 14% interest compounded annually is worth how much now?
a)
$47,798.90
b)
$87,798.90
c)
$127,798
d)
$7,798
18.
You invested $1,900 at 4% interest compounded annually for 3 years.  How much interest did you earn in 3 years?
a)
$2,372.40
b)
$237.24
c)
$2,137.24
d)
$3,197.60
19.

You deposit $2,500 in a savings account.

What is the difference in the amount of interest that will be paid in each situation?

Option A) Interest rate of 8.25% simple interest for 2 years

Option B) Interest rate of 6.5% compounded annually for 2 years

a)

$769.40

b)

$335.56

c)

$76.94

d)

$68.52

20.
Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?
a)
$800
b)
$1,000
c)
$1,200
d)
$1,500
21.

The amount of property in which a willing buyer to a willing seller for the property when neither one is under the compulsion to buy nor to sell is called ______.

a)

Fair value

b)

Market value

c)

Good will value

d)

Book value

22.

In computing depreciation of an equipment. which of the following represents the first cost? A. The original purchase price and freight charges

a)

Installation expenses

b)

Initial taxes and permit fees

c)

The original purchase price and freight charges

d)

All of these

23.

The process of determining the value or worth of a physical property for specific reason is called

a)

Investment

b)

Valuation

c)

Economy

d)

Depletion

24.

The unrecovered depreciation which results due to poor estimates as to the life of the equipment is called _____ .

a)

Sunk cost

b)

Economic life

c)

In-place value

d)

Annuity

25.

What refers to the present worth of cost associated with an asset for an infinite period of time?

a)

Annual cost

b)

Increment cost

c)

Capitalized cost

d)

Operating cost

26.

Capitalized cost of a project is also known as ______. .

a)

Infinite cost

b)

Life cycle cost

c)

Life cost

d)

Project cost

27.

A form of business organization in which a person conducts his business alone and entirely for his own profit. being solely responsible for all its activities and liabilities.

a)

Sole proprietorship

b)

Entrepreneurship

c)

Partnership

d)

Corporation

28.

What is the simplest form of business organization?

a)

Sole proprietorship

b)

Partnership

c)

Enterprise

d)

Corporation

29.

Double taxation is a disadvantage of which business organization?

a)

Sole proprietorship

b)

Partnership

c)

Corporation

d)

Enterprise

30.

Which is true about partnership?

a)

It has a perpetual life.

b)

It will be dissolved if one of the partners ceases to be connected with the partnership.

c)

It can be handed down from one generation of partners to another.

d)

Its capitalization must be equal for each partner.

31.

When is payment made on an annuity due?

a)

Beginning of the Period

b)

Middle of the period

c)

First 3 days of the period

d)

End of the period

32.

When is payment made on an ordinary annuity?

a)

Beginning of the period

b)

Middle of the period

c)

First 3 days of the period

d)

End of the period

33.

What is the main difference between an annuity and a compound interest investment?

a)

A series of payments is made for annuities.

b)

Compound interest investments are for a shorter time period.

c)

The cash value of annuities can be figured using the compound interest table.

d)

Annuities involve a series of payments of usually differing amounts, whereas compound investments involve regular contributions of equal amounts.

34.

_________ is concerned with creating an estate, whereas ________ are concerned with liquidating an estate

a)

Annuities, insurance

b)

Perpetuities, annuities

c)

Insurance, perpetuties

d)

Insurance, annuities

35.

The principal reason for investing in annuities is:

a)

to create an estate

b)

as a retirement tool

c)

to leave an inheritance

d)

All of the choices

36.

Before the payout period begins, the annuity is in the

a)

Premium phase

b)

Collection phase

c)

Accumulation phase

d)

None of the choices

37.

It is a series of payments usually equal, made at equal intervals of time.

a)

sinking fund

b)

annuity

c)

bond

d)

loan

38.

Mario deposits P800 at the end of each 3 months in a loan association which gives 8% compounded quarterly. What is P800 in the given situation?

a)

annual payment

b)

interest

c)

periodic payment

d)

loan payment

39.

At the end of each 3 months a company will deposit P75,000 for 10 years in a depreciation fund to provide a replacement of machinery at the end of 10 years. Find the total number of payments.

a)

13

b)

30

c)

40

d)

750,000

40.

It is the time from the beginning of the first payment interval to the end of the last payment interval.

a)

period

b)

term

c)

contract

d)

perpetuity

41.

It is an annuity in which the first payment is delayed for a period of time.

a)

postponed

b)

deferred

c)

derailed

d)

frozen

42.

Solve the period of deferral.

Payments of Php 2,000 at the end every six months for five years with the first payment made two years from now.

a)

5

b)

3

c)

4

d)

6

43.

Evelyn purchased a brand new car. She paid Php 150,000 down payment and Php 9,000 payable at the beginning of each month of 3 years. If money is worth 6% compounded monthly, what is the equivalent cash price of the car?

a)

PHP 454,839.15

b)

PHP 445,839.15

c)

PHP 544,839.15

d)

PHP 295,839.15

44.

It is an annuity in which the first periodic payment is made after a certain interval of time.

a)

Ordinary Annuity

b)

Deferred Annuity

c)

General Annuity

d)

Simple Ordinary Annuity

45.

A man needs to borrow P73200 from the bank which charges 12% compounded annually in order to build a house. How much must

he pay monthly to amortize the loan within a period of ten years?

a)

12955.2

b)

15855.45

c)

13994.17

d)

12000.25