Test I. Multiple choice. Encircle the correct answer.

1. If Maria borrowed 10,000 on October 1, 2018 for 1 year at 8% interest what is the
maturity date of her loan?
a. October 1, 2018 c. October 1, 2019
b. September 30, 2018 d. October 2, 2019

2. If Juan borrowed 10,000 on September 1, 2018 to be paid on December 1, 2019 at 2%

interest, what is the term of his loan?
a. 1 year c. 1 year & 3 months
b. 2% d. 0.02

3. Interest that is computed on the principal and also on the accumulated past interests
a. Interest c. Simple interest
b. Compounded interest d. Future value

4. Rate when compounded annually will give the same compound each year with the
nominal rate.
a. Effective rate c. Equivalent rate
b. Nominal rate d. Rate

5. The amount of money borrowed or invested

a. Principal c. Payment
b. Future value d. Interest
6. Amount after t years that the lender receives from the borrower on the maturity date
a. Interest c. Money
b. Future value d. Cash

7. The money paid for the use of borrowed money

a. Interest c. Principal
b. Future Value d. Payment

8. An annuity where the payment interval is the same as the interest period
a. Simple annuity c. General Annuity
b. Annuity Due d. Contingent Annuity

9. A type of annuity in which the payments are made at beginning of each payment interval
a. Annuity due c. Simple Annuity
b. Ordinary Annuity d. General Annuity

10. Share in the ownership of a company

a. Stocks c. Investment
b. Bonds d. Share

11. Interest-bearing security which promises to pay a stated amount of money on the maturity
date and regular interest payments called coupons
a. Bonds c. Stocks
b. Investment d. Share

12. The current price of a stock at which it can be sold

a. Market value c. Market Price
b. Price D. Stock Price

13. Share in the company’s profit

a. Dividend c. Share of stocks
 b. Par value d. Profit

14. Periodic interest payment that the bondholder receives during the time between purchase
date and maturity date; usually receive semi-annually.
a. Coupon c. Bond
b. Interest d. Share

15. A place where stocks can be bought or sold.

a. Stock market c. Bank
b. Market d. Manila

Test II. Solve what is ask for in each item.

A. Problem solving (3 points each)

1. How much interest is charged when 50,000.00 is borrowed for 9 months at an annual
interest rate at 10%?
a. 3,750.00 b. 3, 745.00 c. 3, 850.00 d. 3,400.00

2. Mr.   Smith deposited PhP40, 000 in a bank and earned simple interest at 7% per annum
for two years. Calculate the interest earned at the end of the period.

a. 4,000.00 b. 2,800.00 c. 5,600.00 d. 3,400.00

3. How much simple interest is due on a loan of US$120 for two years if the annual rate of
interest is 5 ½ %.

a. 12.00 b. 13.20 c. 26.40 d. 26

4. A man wishes to invest $1500. He can invest in an Investment club which pays simple
interest of 8% for 3 years. What is the amount in his account after 3 years?

a. 18,321.00 b. 1,860.00 c. 1,830 d. 1,524.00

5. How long will it take for $1000 to become $1300 at 5% simple interest rate?

a. 3 years b. 6 years c. 6 years & 5 months d. 9 years

B. Complete the truth table below (1 point each):

p q pVq
T T 6.
T F 7.
F T 8.
F F 9.

C. State the negation of the following propositions (2 points each).

10. Mary received a text message from her friend

11. Mary teaches high-level mathematics to college students
12. Juan was not able to fetch his sister from school today
13. The tinikling is the most difficult dance.
D. Determine whether the following statements are propositions. If proposition, write P, if
not, write NP (2 points each).

14. Please close the door.

15. Is the traffic heavy along Katipunan Avenue today?
16. 2 < -1
17. Answer the test carefully.

GOOD L U C K!