GENERAL MATHEMATICS 2ND QUARTER EXAM

SEM 1 SY 2019 – 2020

I. Identification. The terms labeled A to Y are the ones being described in the sentences
numbered 1 to 25. Match each term with the correct sentence.

A. Amortization Method J. Maturity date S. Principal

B. Annuity K. Maturity value T. Rate of Interest
C. Borrower or debtor L. Mortgage U. Periodic Payment
D. Chattel Mortgage M. Mortgagee V. Simple Annuity
E. Collateral N. Mortgagor W. Simple Interest
F. Compound Interest O. Origin or Loan Date X. Term of Annuity
G. General Annuity P. Outstanding Balance Y. Time or term
H. Interest Q. Payment Interval
I. Lender or Creditor R. Present Value of an Annuity

1. Refers to a person (or institution) who invests the money or makes the funds available.
2. Refers to a person (or institution) who owes the money or avails of the funds from the lender.
3. ate on which money is received by the borrower.
4. A date on which the money borrowed or loan is to be completely repaid.
5. Amount of time in years the money is borrowed or invested; length of time between the origin
and maturity dates.
6. Amount of money borrowed or invested on the origin date.
7. Charged by the lender, or rate of increase of the investment.
8. Amount paid or earned for the use of money.
9. Interest that is computed on the principal and then added to it.
10. Interest is computed on the principal and also on the accumulated past interests.
11. Amount after t years that the lender receives from the borrower on the maturity date.
12. A sequence of payments made at equal (fixed) intervals or periods of time.
13. The time between successive payments.
14. Time between the first payment interval and last payment interval.
15. The amount of each payment of the annuity.
16. The sum of present values of all the payments to be made during the entire term of the
annuity.
17. A type of annuity wherein the payment interval is the same as the interest period.
18. A type of Annuity wherein the payment interval is not the same as the interest period.
19. A method of paying a loan (principal and interest) on installment basis, usually of equal
amounts at regular intervals.
20. A loan, secured by a collateral, that the borrower is obliged to pay at specified terms.
21. A mortgage on a movable property.
22. An asset used to secure the loan – it may be a real-estate or other investments.
23. Refers to any remaining debt after a specified time.
24. Refers to the borrower in a mortgage.
25. Refers to the lender in a mortgage.
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II. Multiple Choice. In each item, choose the letter of most appropriate answer.

26. This refers to the money lent specifically for a business purpose, or may be used to start a
business or to have a business expansion.
A. Business Loan C. Collateral
B. Consume Loan D. Term of the Loan

27. A form of equity financing or raising money by allowing investors to be part owners of the
company.
A. Stock C. Market Value
B. Bond D. Par Value

28. A form of debt financing, or raising money by borrowing from investors.

A. Stock C. Market Value
B. Bond D. Par Value

29. Mr. Cuevas purchases a new motorcycle for ₱80,000. This was made possible because of
approved loan he had with a lending institution. What type of loan did Mr. Cuevas had on a
lending institution?
A. Salary loan C. Collateral loan
B. Consumer loan D. Business loan

30. Joan expects interest rates to decline over the next few months. To maximize her earnings, she
should use a(n):
A. regular savings account C. five-year certificate of deposit
B. interest-bearing checking D. six-month certificate of deposit
account

31. When interest rates are rising, a person would be best served by:
A. short-term savings instruments C. short-term loans
B. long-term savings instruments D. variable-rate loans

32. To avoid high fees for loans, a person should avoid borrowing from a:
A. credit union C. pawnshop
B. savings and loan association D. commercial bank

33. Comparison of earnings for different savings plans can best be accomplished using the:
A. discounted present value C. net present value
B. compounded rate of return D. annual percentage yield

34. Which of the following institutions makes loans based on the value of tangibles possessions,
such as jewelry and collectibles?
A. life insurance company C. mortgage company
B. finance company D. pawnshop

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35. If you cosign a loan:
A. you are only responsible for half of the debt obligation.
B. you will be asked, but not required, to pay the loan in full if the borrower fails to pay.
C. you will be required to pay the loan in full if the borrower defaults on the payments.
D. the creditor must first try to collect from the borrower.

36. Which one of the following is often the source of the least expensive loan?
A. parents or family members C. savings and loan associations
B. banks D. finance companies

37. A car dealer offers a 15% down payment for the purchased car. How much is the mortgage
amount if the cash value of the car is ₱1,500,000?
A. ₱1,275,000 C. ₱824,000
B. ₱3,990,000 D. ₱540,000

38. If a small unit apartment is purchased for ₱1,700,000 and the bank required 25% down
payment, how much is the mortgaged amount?
A. ₱1,275,000 C. ₱824,000
B. ₱3,990,000 D. ₱540,000

39. Mr. Lumagas is purchasing a house and lot in Bonawon, Siaton for ₱1,500,000. Land Bank has
approved his loan application for a 15-year fixed-rate loan at 10% annual interest. If he makes
a 20% down payment, what is the monthly payment?
A. ₱14,400 C. ₱16,600
B. ₱15,500 D. ₱17,700

40. Paolo Peralta, a car enthusiast, sold his 2010 car for ₱300,000. He will be using this money as
down payment in order to purchase a 2018 sports car. The selling price of the 2018 sports car is
₱1,300,000. Paolo has a good credit standing, so BDO offered him a 6% financing rate on a 4-
year term. Paolo’s net take-home pay ₱1,200,000 a year. His monthly fixed expenses are about
₱25,000. Can Paolo afford the car?
A. Yes, but he will have no money left on his pocket.
B. Yes, and he will still have enough money left in his income.
C. No, because his total money including bank’s financing is not enough to purchase the
car.
D. Cannot be determined.

41. Pertains to a statement in declarative form which expresses a single and complete idea, and
bears either truth or falsity.
A. Statement C. Antecedent
B. Premise D. Proposition

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42. A proposition is said to be ________________ if it is a proposition made up of two or more
component propositions where the predicate of the propositions does not assert the subject of
the proposition in an absolute manner.
A. simple C. categorical
B. compound D. hypothetical

43. A proposition is said to be ________________ if it has only one subject and one predicate.
A. simple C. categorical
B. compound D. hypothetical

44. A compound proposition is a proposition wherein two or more simple sentences are combined
together by a(n) ________________.
A. operator C. symbol
B. connector D. categorical operator

45. This principle states that a proposition cannot be both true and false at the same time and at
the same respect in one line of reasoning.
A. Principle of Excluded Middle C. Principle of Noncontradiction
B. Principle of Identity D. Principle of Tautology

46. Which of the following is NOT a statement?

A. Some natural numbers are prime.
B. Mice do not have wings, unless mice are types of birds.
C. Form some number 𝑥, 𝑥 − 1 = 3.
D. This sentence is not true.

47. Which of the following is an example of a compound proposition?

A. You should pass this test.
B. It is not true that 2 + 3 = 6.
C. Dumaguete City is known as the “City of Gentle People” and the “City of Motorcycles
and Tempura”.
D. Jose Rizal is our National Hero.

48. Which of the following is a contradiction?

A. The kitchen counter stone is brittle and unbreakable.
B. There exists a number x such that 𝑥 − 1 = 𝑥 + 1.
C. Some integers are positive and less than zero.
D. Mice are animals but not rodents.

49. The negation of the phrase “Nobody loves to work all the time” is:
A. Somebody does not love to work all the time.
B. Somebody loves to work all the time.
C. Everybody loves to work sometimes.
D. Somebody does not love to work sometimes.

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 50. Which of the following is NOT an equivalent form of the conditional statement “All integers are
rational numbers”?
A. Being an integer is sufficient for it to be a rational number.
B. It is an integer unless it is not a rational number.
C. If it is an integer, then it is a rational number.
D. It is an integer if and only if it is a rational number.

51. What can you conclude in general, about a statement of the form [𝑝 ⋀ (−𝑝)], where 𝑝, 𝑞
represents any propositions?
A. It is a tautology.
B. It is a contradiction.
C. Nothing can be deduced from that form.
D. NONE OF THE CHOICES

52. If 𝑝, 𝑞, 𝑟, 𝑠 are all propositions, how many rows are necessary in constructing the truth table of
the statement −(𝑝 ⋀ 𝑞) → [𝑟⋁(−𝑠)]?
A. 4 B. 8 C. 16 D. 32

For items 53 and 54, let

𝑠 represents statement “She is from Giligaon.”

𝑙 represents statement “She is lives on Bonawon.”
𝑡 represents statement “She is a teenager.”

53. Which of the following verbal statements corresponds to the symbolic statement
[(−𝑠) ∨ 𝑡] → 𝑙
A. If she is not from Giligaon and she is a teenager, then she lives on Bonawon.
B. If she is not from Giligaon or she is a teenager, then she lives on Bonawon.
C. If she if from Giligaon or she is a teenager, then she lives on Bonawon.
D. She is not from Giligaon, or if she is a teenager then she lives on Bonawon.

54. Which of the following symbolic statements corresponds to the verbal statement
“It is not the case that she is from Giligaon or that she is a teenager, but she lives on
Bonawon.”
A. −(𝑠 ⋁ 𝑡 ⋀ 𝑙) C. −(𝑠 ⋁ 𝑡) ⋀ 𝑙)
B. (−𝑠) ⋁ (−𝑡) ⋀ 𝑙 D. NONE OF THE CHOICES

55. If 𝑝 is true and 𝑞, 𝑟 are false, then what is the truth value of the statement 𝑟⋁{−[𝑝⋀(−𝑞)]}?
A. True C. Neither
B. False D. Cannot be determined

56. Let 𝑝 → 𝑞 be the political slogan: “If there are no corrupt people, then there are poor people.”
Which of the following is not a correct form of the conditional proposition?
A. Converse: If there are no poor people, there are no corrupt people.
B. Contrapositive: If there are poor people, then there are corrupt people.
C. Inverse: If there are corrupt people, then there are poor people.
D. NONE OF THE CHOICES
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57. Show that −[𝑝 → (−𝑞)] ⇔ (𝑝⋀𝑞) by completing the missing ‘reason’ on the table below.
Reason
−[𝑝 → (−𝑞)] Given
⇔ −[(−𝑝) ⋁ (−𝑞)] Switcheroo
⇔ −(−𝑝)⋀ [−(−𝑞)] De Morgan’s Law
⇔𝑝⋀𝑞 ?

A. Switcheroo C. Commutative Law

B. Associative Law D. Double Negation

58. Which of the following statement is true?

A. [(𝑝 → 𝑟)⋁(𝑞 → 𝑟)] ⇔ [(𝑝⋁𝑞) → 𝑟]
B. [(𝑝⋁𝑟)⋀(𝑞 → 𝑟)] ⇔ [(𝑝⋁𝑞) → 𝑟]
C. [(𝑝⋁𝑟)⋀(𝑞 → 𝑟)] ⇔ [(𝑝⋁𝑞)⋁𝑟]
D. (𝑝⋁𝑞) ⇔ [(−𝑝) → 𝑞]

59. Given the argument:

If ideas are important, then books are important.
If ideas change lives, ideas are important.
Hence, if books are important, then ideas changes lives.

Which of the following is true?

A. The argument is VALID and SOUND.
B. The argument is VALID but NOT SOUND.
C. The argument is INVALID but SOUND.
D. The argument is INVALID and NOT SOUND.

60. Consider the following argument:

If I am not good in math, then I am not intelligent.
I am not good in math.
Then, I am not intelligent.

Which of the following is true concerning the above argument?

A. The argument is VALID (Modus Ponens)
B. The argument is VALID (Syllogism)
C. The argument is INVALID (Fallacy of the Converse)
D. The argument is INVALID (Fallacy of the Inverse)