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Name:_________________________________ Date:_______________
Year & Section:__________________________ Score:______________
Multiple Choice. Encircle the letter of your choice. Any form of erasure means wrong.
1. An amount becomes $3250 in 4 years and $16250 in 8 years on compound interest. Find the amount deposited.
A. 800 B. 650 C. 995 D. 525
2. Find the balance on a deposit of $3000, earning 4% interest compounded quarterly for 1 year.
A. $3246 B. $3500 C. $3122 D. $2828
3. Find the simple interest earned on $2800 deposited in a bank at 2% annual interest after 5 years.
A. $270 B. $280 C. $230 D. $305
5. An amount of time in years the money is invested or the length of time between the origin and the maturity date.
A. Lender B. Interest C. Term D. Loan Date
6. The rate compounded annually that will give the same compound amount when the frequency of conversion is equal
to 1.
A. Effective rate B. Nominal rateC. Interest rate D. Principal
9. How long will an amount of money double at a simple interest rate of 2% per annum?
A.50 years B.5 years C. 20 years D.25 years
10. Angel deposited P20,000 in a bank that pays 0.5% simple interest. How much will be her money after 6 years?
A. P 20,600 B. P 21,600 C. P 19,800 D. P 20, 200
11. A person who invests the money or makes the funds available for a certain purpose or reason?
A. Principal B. Creditor C. Debtor D. Bank
12. Marissa deposited $900 in her savings account. The rate of simple interest is 5% per year. Find the balance at the
end of 4 years.
A. $720 B. $1080 C. $180 D. None of the above
13. A person or institution who owes the money or avails of the funds from the lender?
A. Principal B. Creditor C. Debtor D. Bank
16. Find the interest if P50,000 is invested at 5% compounded annually for 8 years.
A. P23, 800 B. P23, 872.77C. P23, 873 D. P23,872
17. What is the present value of P50, 000 due in 7 years if money is worth 10% compounded annually?
A. P25, 650 B. P25, 657.91 C. P25, 656.91 D. P25, 657
18. An advertisement of a bank promises to double an investor's money in 5 years. What is the rate of simple interest
that an account should earn to double itself in 5 years?
A. 30% B.15% C. 25% D. 20%
19. The annual rate, usually in percent charged by the lender or rate of increase of the investment?
A. Principal B. Future value C. Rate D. Interest
20. An annual interest rate that can be compounded more than once a year?
A. Interest rate B. Nominal rate C. Effective rate D. Equivalent rate
23. An interest that is computed on the principal and then added to it?
A. Interest B. Simple Interest C. Compound Interest D. Maturity date
24. An interest that is computed on the principal and also on the accumulated past interests?
A. Interest B. Simple Interest C. Compound InterestD. Maturity date
25. What effective rate is equivalent to 12% compounded monthly while the equivalent rate is compounded semi-
annually?
A. 12.304% B. 11.052% C. 14.012% D. 13.561%
26. How long will it take for a sum of money to grow from P1, 250 to P10,000, if it is invested at 12.5% p.a simple
interest?
A. 8 years B. 64 years C. 72 years D. 56 years
27. Emily's mother deposits $3000 in a savings account towards her college education. She gets a compound interest of 14%
x
annually. The balance in the account is represented by the function rule f(x) = 3000 (1.14) , where x is the time in years. Find the
amount in the savings account after 7 years.
A. $7500 B. $7551 C. $7465 D. $7535
28. What will P1500 amount to in three years if it is invested in 20% p.a. compound interest, interest being compounded
annually?
A. 2400 B. 2678 C. 2592 D. 2540
29. Two annual rates with different conversion periods that will earn the same compound at the end of a given number
of years?
A. Interest rate B. Nominal rate C. Effective rate D. Equivalent rates
32. How long will it take P3,000 to accumulate to P3,500 in a bank savings account at 0.25% compounded monthly?
A. 67.61 years B. 67.67 years C. 67 yearsD. 61.67 years
33. At what interest rate compounded quarterly will money double itself in 10 years?
A. 7.0% B. .070 % C. 70% D. 7.1%
34. Suppose you invested P20, 000 at 3% compounded continuously. How much will you have from this investment after
6 years?
A. P22, 944.35 B. P23, 944.35C. P23, 934.35 D. P23, 943.35
35. Peter is planning to invest P100, 000. Bank A is offering 5% compounded semi-annually while Bank B is offering 4.5%
compounded monthly. If he plans to invest this amount for 5 years, in which bank should he invest?
A. Bank A B. Bank B C. Both bank A & B D. None of the above