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Quiz | Mathematics of Finance

Total questions: 50

Worksheet time: 1hrs 15mins

Name
Class
Date
1.

What is the interest on ₱10,000 at 6% simple interest for 2 years?

a)

₱600

b)

₱1,200

c)

₱1,000

d)

₱1,100

2.

Find the total amount after 3 years if ₱15,000 is invested at 8% simple interest.

a)

₱17,800

b)

₱18,600

c)

₱18,000

d)

₱18,200

3.

₱12,000 earns ₱1,440 simple interest at 6% per annum. Find the time.

a)

1 year

b)

2 years

c)

3 years

d)

4 years

4.

₱20,000 is borrowed at 10% simple interest. How much will be paid after 18 months?

a)

₱21,500

b)

₱23,000

c)

₱23,500

5.

If ₱8,000 is invested at 12% compounded annually for 2 years, what is the amount?

a)

₱8,960

b)

₱9,984

c)

₱10,048

d)

₱10,050

6.

₱5,000 invested at 10% compounded annually for 3 years will grow to:

a)

₱6,655

b)

₱6,000

c)

₱6,500

d)

₱6,700

7.

₱10,000 compounded quarterly at 8% for 2 years yields:

a)

₱11,648

b)

₱11,500

c)

₱11,700

d)

₱11,800

8.

Find the compound interest on ₱7,000 at 9% compounded annually for 3 years.

a)

₱1,850

b)

₱1,980

c)

₱2,067

9.

₱5,000 is invested at 12% compounded monthly for 2 years.

a)

₱6,000

b)

₱6,341

c)

₱6,200

d)

₱6,500

10.

Find the compound interest when ₱12,000 is invested at 8% compounded semi-annually for 3 years.

a)

₱3,012

b)

₱3,089

c)

₱3,072

d)

₱3,200

11.

Simple interest is based on:

a)

Principal only

b)

Principal and accumulated interest

c)

Time only

d)

Rate only

12.

Compound interest grows:

a)

Linearly

b)

Constantly

c)

Exponentially

13.

The more frequent the compounding:

a)

The lesser the amount

b)

The higher the total amount

c)

No effect

d)

Depends on rate

14.

What is the principal if ₱600 interest is earned in 3 years at 5%?

a)

₱4,000

b)

₱5,000

c)

₱3,000

d)

₱2,500

15.

According to the “Rule of 72,” money doubles in about 7.2 years at a rate of:

a)

5%

b)

7%

c)

10%

d)

12%

16.

Annual interest rate of 10% compounded semi-annually has an effective rate of approximately:

a)

10.00%

b)

10.25%

c)

11.00%

17.

When interest is added to principal, it is called:

a)

Inflation

b)

Deflation

c)

Compounding

d)

Discounting

18.

If the rate increases, interest:

a)

Decreases

b)

Increases

c)

Stays the same

d)

Becomes zero

19.

If time doubles, simple interest:

a)

Halves

b)

Doubles

c)

Triples

d)

Stays constant

20.

Simple interest is most appropriate for:

a)

Long-term investments

b)

Savings accounts

c)

Short-term loans

d)

Bonds

21.

Credit card companies typically charge interest:

a)

Weekly

b)

Monthly

c)

Quarterly

d)

Annually

22.

If your balance is ₱20,000 and the monthly interest is 2%, how much interest is charged?

a)

₱200

b)

₱300

c)

₱400

d)

₱500

23.

The Annual Percentage Rate (APR) refers to:

a)

Monthly rate × 12

b)

Interest without fees

c)

Annualized rate including fees

d)

Daily rate

24.

Failing to pay the minimum balance results in:

a)

Lower rates

b)

Cashback

c)

Late fees and accumulated interest

d)

Loan forgiveness

25.

A ₱100,000 loan at 10% simple interest for 3 years will have a total interest of:

a)

₱25,000

b)

₱30,000

c)

₱35,000

d)

₱40,000

26.

Monthly installment for a ₱60,000 loan payable in 12 months at 12% annual simple interest:

a)

₱5,200

b)

₱5,400

c)

₱5,600

d)

₱5,800

27.

Credit card interest is usually compounded:

a)

Quarterly

b)

Semi-annually

c)

Daily or monthly

d)

Yearly

28.

Consumer loans usually use:

a)

Compound interest

b)

Simple interest

c)

Discounted interest

29.

Using one credit card to pay another is called:

a)

Balance transfer

b)

Debt cancellation

c)

Refinancing

d)

Consolidation

30.

The “grace period” in credit cards refers to:

a)

The time before interest applies

b)

Time to apply for credit

c)

Period of card activation

d)

Expiration of card

31.

Revolving credit allows you to:

a)

Borrow a fixed amount once

b)

Borrow repeatedly up to a limit

c)

Borrow interest-free

d)

Pay no minimum

32.

A secured loan is:

a)

Unbacked by collateral

b)

Based on credit score

c)

Backed by collateral

d)

Always free of interest

33.

Which of the following is based on the borrower's credit history?

a)

Requires property as collateral

b)

Is only for businesses

c)

Is based on borrower’s credit history

d)

Has zero interest

34.

Installment loans are characterized by:

a)

Variable payments

b)

Lump-sum payment

c)

Fixed payments over time

d)

No maturity

35.

A stock represents:

a)

Ownership in a company

b)

A company’s debt

c)

Government loan

d)

Mutual fund share

36.

A bond represents:

a)

Ownership in a company

b)

Loan made to government or corporation

c)

Savings account

d)

Investment in real estate

37.

A mutual fund:

a)

Pools investors’ money into one portfolio

b)

Is a loan from government

38.

What is the correct statement about mutual funds?

a)

a) Pools investors’ money into one portfolio

b)

b) Is a type of bond

c)

c) Has no risk

d)

d) Pays fixed interest

39.

The return from owning stocks is called:

a)

Coupon

b)

Dividend

c)

Interest

d)

Premium

40.

The return from owning bonds is called:

a)

Dividend

b)

Interest or coupon

c)

Profit

d)

Equity

41.

A ₱10,000 bond at 8% annual coupon pays:

a)

₱600

b)

₱800

c)

₱900

d)

₱1,000

42.

If a stock’s price increases from ₱100 to ₱120, what is the percent gain?

a)

15%

b)

18%

c)

20%

d)

25%

43.

Which is riskier?

a)

Bonds

b)

Mutual funds

c)

Stocks

d)

Savings deposits

44.

Which offers fixed income?

a)

Stocks

b)

Bonds

c)

Mutual funds

d)

Real estate

45.

Which investment is managed by professionals?

a)

Stocks

b)

Bonds

c)

Mutual funds

d)

Loans

46.

Diversification helps:

a)

Increase risk

b)

Eliminate profit

c)

Reduce risk

d)

Increase debt

47.

A mutual fund with 10% average annual return doubles in roughly:

a)

5 years

b)

7 years

c)

10 years

48.

Stock dividends are usually paid:

a)

Daily

b)

Weekly

c)

Quarterly

d)

Annually

49.

49. Government bonds are considered:

a)

High-risk

b)

Low-risk

c)

Risk-free

d)

Moderate-risk

50.

Investing in different asset types (stocks, bonds, mutual funds) is called:

a)

Inflation

b)

Diversification

c)

Risk pooling

d)

Liquidity