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Q4 > GEN MATH M1-10 > Flashcards

GEN MATH M1-10 Flashcards

1
Q

The amount of a borrower pays for using money

A

Interest(I)

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2
Q

The amount of money borrowed or deposit

A

Principal (P)

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3
Q

The interest paid on one unit (peso) of capital (principal)

A

Rate of Interest (r)

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4
Q

The amount of time allotted for repayment of the principal plus the interest. It is a term in years

A

Time(t)

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5
Q

The principal amount plus the interest. Also called FUTURE VALUE (FV) or Maturity Value

A

Amount(A) or Balance

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6
Q

It is an interest the is computed on the principal amount only.

A

Simple interest

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7
Q

It is an interest computed on the principal and also on the accumulated interest

A

Compound Interest

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8
Q

What formula is this?

Is = Prt

A

Simple Interest

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9
Q

What formula is this?

A = P + Pr = P(1+r)

A

Compound Interest

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10
Q

A = P(1 + rt)

A

Maturity Value of Simple Interest

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11
Q

A = P(1 + r)^t

A

Maturity Value of Compound Interest

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12
Q

True or False
Compound Interest is always Greater than simple Interest

A

True

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13
Q

Guven:
P= 72,500.00
r= 8%
t= 3 years

What is the simple interest and maturity value?

A

17,400.00 and 89,900.00

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14
Q

Given:
P= 540,500.00
r= 7%
t= 6 years

What is the compound Interest and Maturity Value?

A

270,644.76 and 811,144.76

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15
Q

It pertains to the interval for compounding

A

Compounding more than once a year period

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16
Q

Guven:
P=
A=
r= 12%
t= 5 years
Is= 20,000.00

What is the principal amount and the future Value?

A

33,333.33 and 53,333.33

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17
Q

P= A/(1 + r/k)^Kt

Derived Formula

A

Principal amount

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18
Q

Compound Amount - Principal =

A

Compound Interest

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19
Q

A = P(1 + r/k)^Kt

A

Compound Future Value

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20
Q

True or False

In Simple Interest we can use the triangle thing to easily remember the formula

(Yung I/PRT)

A

True

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21
Q

r/K is called the periodic rate

True or False

A

True

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22
Q

Interest based on a 360 day year

A

Ordinary Interest

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23
Q

Interest based on a 365-day year

A

Exact Interest

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24
Q

Lourdes wants to save money to
buy the school supplies for the
coming school year, so her sale
products online. Suppose she earn
₱2,500.00 and deposit it into an
account that earns simple interest of
3%. After 5 months, how much is her
money now?

Simple Interest Problem

A

After 5 months Lourdes has an amount of 2,531.25.00

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25
Q

a sequence of payments made at equal (fixed) intervals or periods of time

A

Annuity

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26
Q

the time between successive payments

A

Payment Interval

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27
Q

time between the first payment interval and last payment
interval

A

Term of an annuity, t

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28
Q

the amount of each payment

A

Regular or Periodic payment, R

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29
Q

sum of future values of all the payments to be made during the entire term of the annuity.

A

Amount (Future Value) of an annuity, F

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30
Q

sum of present values of all the payments to be made during the entire term of the annuity.

A

Present value of an annuity, P

31
Q

an annuity where the payment interval is the same as the interest period

A

simple annuity

32
Q

An annuity where the payment interval is not the same as the
interest period

A

General annuity

33
Q

(or Annuity Immediate) A type of annuity in which the payments are made at
the end of each payment interval

A

Ordinary annuity

34
Q

A type of annuity in which the payments are made at beginning of each payment interval

A

Annuity Due

35
Q

An annuity in which payments begin and end at definite times

A

Annuity times

36
Q

An annuity in which the payments extended over an indeterminate length of time

A

Contingent Annuity

37
Q

Both Simple and General Annuities cannot be Ordinary or Due.

True or False

A

False

38
Q

F = R (𝟏+𝒋)^𝒏 −𝟏
/ 𝒋

A

Future Value

39
Q

Simple annuities

P = R 𝟏− (𝟏+𝒋)
^−𝒏/𝒋

A

Present Value

40
Q

General annuities

F = R* (𝟏+𝒋)
^𝒏 −𝟏
/𝒋

A

Future Value

41
Q

General annuity

P = R * 𝟏− (𝟏+𝒋)^−𝒏
/𝒋

A

Present Value

42
Q

Mel started to deposit P1,000 monthly in a fund that pays 6% compounded quarterly. How much will be in the fund after 15 years?

A

Mel will have P290,076.28 in the fund after 20 years.

43
Q

a cash flow (payment stream) on a particular date refers to a single amount that is equivalent to the value of the payment stream at that date.

A

fair market value or economic value

44
Q

time between the purchase of an annuity and the start of the payments
for the deferred annuity.

A

Period of Deferral

45
Q

annuity that does not begin until a given time interval has passed

A

Deferred Annuity

46
Q

Stocks and bonds are called ________

A

Securities

47
Q

people who purchase stocks and bonds are called __________

A

Investors

48
Q

units of equity or ownership in a company

A

Stocks/ shares

49
Q

You can be considered a STOCKHOLDER or SHAREHOLDER if

A

If you buy shares of stocks of a company.

50
Q

As an owner, the stockholder is
eligible to receive a ________ or a share of the company’s profits

A

dividend

51
Q

Stockholders carry a certificate of ownership called

A

stock certificate

52
Q

The value of the stock printed in the certificate is called

A

Per value

53
Q

Some corporations issue stock
without giving the shares any value. This stock is called

A

no-par stock.

54
Q

There are two types of stocks that are usually issued by a company, the
_______ ______ and the ________ ______

A

preferred stocks and common stocks.

55
Q

certificates that promise to pay a fixed rate of interest by a corporation or government at the end of certain time.

A

Bonds

56
Q

A person who buys a bond is called

A

Bondholder

57
Q

Bonds can also be referred to as bills, notes, debt securities or debt
obligations.

A

Just another info🐢

58
Q

The amount of money transferred from lender to borrower when bond is first issued.

A

face value or principal of
the bond

59
Q

the day by which the borrower must repay the bond’s principal in full

A

Maturity date

60
Q

A term for the interest that the bond issuer will return to the purchaser as a percentage of the principal.

A

Coupon

61
Q

Bonds have two kinds of values. These are _____ ______ and _______ ______.

A

par value and market value.

62
Q

place where stocks are bought and sold.

A

Stock market

63
Q

measure of a portion of the stock market.

A

Stock market index

64
Q

a licensed financial institution that offers various types of loans and receives deposits

A

Bank

65
Q

a sum of money that is borrowed from a lending institution with the promise to pay back with interest over pre-determined period of time.

A

loans

66
Q

There are two types of loan namely the business loan and consumer loan.

A

Info🦉

67
Q

Is money lent to an individual for personal or family purpose.

A

CONSUMER LOAN

68
Q

Types of Consumer Loan
a. Home Loan - is a contract between a borrower and a lender that allows
someone to borrow money to buy a house, apartment, condo, or other livable
property. A home loan is typically paid back over a term of 10, 15 or 30 years.
b. Car Loan - A car loan (also known as an automobile loan, or auto loan) is a
sum of money a consumer borrows in order to purchase a car
c. Personal Loans – a type of loan with no specific purpose. (Ex: credit card,
educational purposes,etc.)

A

Info🐊 read carefully

69
Q

money lent specifically for a business purpose. It may be used to start a business or to have a business expansion

A

BUSINESS LOAN

70
Q

IDENTIFY IF IT’S CONSUMER LOAN OR BUSINESS LOAN

Mr. Cruz plans to have a bakeshop. He wants to borrow some money from the bank in order for him to buy baking equipment needed to start his bakery
business.

A

Business loan

71
Q

IDENTIFY IF IT’S CONSUMER LOAN OR BUSINESS LOAN

For the purchase of an SUV worth P1,100,000.00, the bank requires a
minimum amount of 25% down payment.

A

Consumer loan

72
Q

IDENTIFY IF IT’S CONSUMER LOAN OR BUSINESS LOAN

A house and lot has a cash value of P 800,000.00. The bank offers a minimum amount of 20% down payment.

A

CONSUMER LOAN

73
Q

IDENTIFY IF IT’S CONSUMER LOAN OR BUSINESS LOAN

Ms. Guting owns a siomai house business. Since her business is doing good, she wants to put another siomai house in the city . She decided to have a loan to establish the new branch of her business.

A

Business loan

74
Q

IDENTIFY IF IT’S CONSUMER LOAN OR BUSINESS LOAN

Mr. Santos obtained a condominium unit loan worth P2,500,000.00.
He has a monthly payment of P28,100.00 for 20 years.

A

Consumer loan

Q4 (2 decks)

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