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- 1. Multiple ChoiceWhat is the main difference between an annuity and a compound interest investment?A series of payments is made for annuities.Compound interest investments are for a shorter time period.The cash value of annuities can be figured using the compound interest table.Annuities involve a series of payments of usually differing amounts, whereas compound investments involve regular contributions of equal amounts.
- 2. Multiple ChoiceThe simple interest formula is I=Prt. The P represents the principle. The principle is ___________________.the amount of money borrowed or depositedthe percent interest for his yearthe amount taxedthe amount the bank owes you for being a customer at their bank
- 3. Multiple Choice
Bruno was given RM2000 when he turned 3 years old. His parents invested it at a 2% interest rate compounded annually. No deposits or withdrawls were made. Which expression can be used to determine how much money Bruno had in the account when he turned 16?
2000(1+0.02)13
2000(1-0.02)13
2000(1+0.02)16
2000(1-0.02)16
- 4. Multiple Choice
The compound interest formula is:
A = P(1 + i)n
What does the S represent?
The amount of interest earned.
The amount of time that has passed.
The total amount of money after a certain amount of time.
The amount required to invest.
- 5. Multiple Choice
If you are calculating the simple interest and you are given the time in months. How can you find the time in years?
divide 12 by the months
divide the months by 12
multiply 12 times the months
change the months to a decimal
- 6. Multiple ChoiceInterest paid on the original principal plus the accumulated interest.Simple InterestCompound InterestExact InterestOrdinary Interest
- 7. Multiple Choice
It refers to the amount of money borrowed.
Interest
Principal
Term
Rate
- 8. Multiple Choice
What do you call the amount earned or paid with the use of money?
Interest
Principal
Term
Rate
- 9. Multiple Choice
Nana took a government loan of $90 000 to buy her dream car. The loan needs to be settled in 15 years with an interest rate 3% compounded every month. Given the monthly payment is $621.52.
If after 10 years, Nana decides to pay off the loan...
Which formula you need to use?
Simple Amount
Compound Amount
Annuity ( Present Value,A)
Annuity ( Future Amount , A)
- 10. Multiple Choice
Nana took a government loan of RM 90 000 to buy her dream car. The loan needs to be settled in 15 years with an interest rate 3% compounded every month. Given the monthly payment is RM621.52.
If Nana default for first two months, calculate the amount she has to pay in the third month?
Which type of situation is involved here?
Simple Amount
Compound Amount
Annuity ( Present Value, A)
Annuity ( Future Amount, S)
- Answer choicesTagsAnswer choicesTags