GEN MATH 2ND PERIO Flashcards
1
Q
- What interest remains constant throughout the investment term?
A
D. Simple Interest
2
Q
- What kind of interest is computed from the principal and accumulated past interests?
A
B. Compound Interest
3
Q
- If you would like to invest money, which bank offer would you prefer if you do not plan to withdraw your money in 2 years?
A
D. 4% compounded interest quarterly
4
Q
- What kind of interest is illustrated by the table below?
A
B. Compound Interest
5
Q
For 5 and 6, suppose you invested Php 20,000.00 in a bank for 5 years given a 3% annual interest.
- How much will you get after 5 years if the bank offers a simple interest?
A
B. 23,000
6
Q
- How much will you get after 5 years if the bank offers a compound interest?
A
B. 23,185.48
7
Q
- It is an amount after t years that the lender receives from the borrower on the maturity date.
A
C. maturity value
8
Q
- How much interest will P70000 earn for 1 ½ years if invested at 8% compounded semi-annually?
A
D. 78,740.48
9
Q
- What annuity is illustrated by the cash flow diagram below? (down lahat, annually at up sa 10)
A
D. Simple Annuity
10
Q
- What annuity is illustrated by the cash flow diagram below? (down lahat, semi annually at up sa 10)
A
B. General Annuity
11
Q
- A purchase of a 1.5HP inverter Dual Cool Air Conditioner in cash would cost P55,998. Martin is a credit card holder subscribed to 9% compounded monthly interest. The most practical scheme he found was the offer of no down payment, but a monthly payment of P4,897.11 must be made. What type of annuity is illustrated?
A
B. General Annuity
12
Q
- A 10-year Educational plan is offered by a financial institution who gives 6% compounded semi-annually. However, clients are requesting for monthly payment options. So, it is monthly payment of P3,000 with 6% compounded semi-annually interest.
A
B. General Annuity
13
Q
- Which solution shows a diagram of a future value?
A
A.
200
200(1.02)
200(1.02)2
200(1.02)3
824.32
14
Q
- Which solution shows a computation of a present value?
A
B.
200
200(1.02)-1
200(1.02)-2
200(1.02)-3
776.78
15
Q
- Which is equal to the future value of an annuity?
A
Future value of the present value of annuity
16
Q
- Which refers to the present value of all cash inflows to the bondholder?
A
B. Term of a Bond
17
Q
- What type of annuity does not begin collecting regular payment until a given time interval has passed?
A
A. Deferred Annuity
18
Q
- Monthly payments of P50,000 for 3 years that will start 8 months from now. What is the period of deferral in the deferred annuity?
A
C. 8 periods
19
Q
- What investment allows investors to share in the ownership of the company?
A
D. Stocks
20
Q
- What investment has a long- term promissory note issued by a corporation in exchange for a sum of money?
A
A. Bonds