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Quiz 2 - Moi

This document contains a quiz on mathematics of investment with 5 questions. The questions involve calculating simple interest, compound interest for various time periods and interest rates on given principal amounts. They also involve calculating effective interest rates and total amounts accumulated over a number of years for investments with changing interest rates and compounding periods.

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339 views

Quiz 2 - Moi

This document contains a quiz on mathematics of investment with 5 questions. The questions involve calculating simple interest, compound interest for various time periods and interest rates on given principal amounts. They also involve calculating effective interest rates and total amounts accumulated over a number of years for investments with changing interest rates and compounding periods.

Uploaded by

SHE
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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QUIZ 2 – MATHEMATICS OF INVESTMENT

NAME: ________________________________________ SECTION: ___________________

Instruction: Provide the information needed in each situation.

1. (a) Find the simple interest on P60,000 for one year at 10%. (b) Find the compound interest if the same
investment is compounded semi-annually? (c) How much is the compound interest greater than the
simple interest?

2. Adah discovered a savings account left to her by a rich uncle while cleaning his old house. When she
was 5 years old, he invested P20,000 in her name, at 6% interest compounded semi-annually. If she is
now 20 years old, how much is the account worth?

3. Albert Albin invested P70,000 in a certificate of deposit for one year, at 6% interest, compounded
quarterly. What are the compound amount, compound interest, and effective rate of Alvin’s
investment? Round the rate to the nearest hundredth percent.

4. Alice Alida invested P88,000 at the TDGB Credit Union at 12% interest compounded quarterly. (a) What
is the effective rate of this investment? (b) What will Alice’s investment be worth after 6 years?

5. Accumulate P600,000 for 15 years if the interest rate is 8% compounded semi-annually for the first ten
years and 9% compounded monthly for the remaining five years. Find the compound amount at the
end of 15 years.

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