Math 11
Which variable represents the future value or accumulated amount in compound interest?
A. F
B. P
C. j
D. t
A. F
What do you call this formula, "F=P(1-i)n "
A. Future Value of Ordinary Annuity
B. Accumulated Value of Simple Interest
C. Maturity Value of Compound Interest
D. Future Value of Discount Loans
C. Maturity Value of Compound Interest
Which of the following is the equivalent of "compounded quarterly"
A. every 3 months
B. every 4 months
C. every 6 months
D. every 2 months
A. every 3 months
In compound interest, the interest rate per period is denoted by the symbol ...
A. j
B. r
C. i
D. n
C. i
In any types of financial investments, m denotes what?
A. The total number of conversions per period
B. The total number of conversions
C. The total number of conversions per year
D. The total number of year per conversions
C. The total number of conversions per year
An account earns 6% compounded monthly. What is the value of m?
A. 6
B. 4
C. 12
D. 24
C. 12
Compounded semi-annually is equivalent to what?
A. 6
B. 2
C. 4
D. 12
B. 2
In the formula of compound interest, what does j mean?
A. Effective rate
B. Nominal rate
C. Periodic rate
D. Percentage rate
B. Nominal rate
The total number of conversion periods is denoted by the symbol....?
A. n
B. m
C. i
D. j
A. n
What is the formula in finding the n to complete the given values to be substituted in a certain formula?
A. n=j/m
B. n=m/j
C. n=jm
D. n=tm
D. n=tm
If an investment is compounded semi-annually for 7 years, what is the total number of conversion periods?
A. 7
B. 12
C. 14
D. 24
C. 14
Which statement best describes compound interest?
A. Interest is earned only on the original principal.
B. Interest is earned on the principal and previously accumulated interest.
C. Interest is always calculated annually.
D. Interest is deducted from the principal every period.
B. Interest is earned on the principal and previously accumulated interest.
An investment earns 8% compounded quarterly. What is the periodic interest rate?
A. 8%
B. 4%
C. 2%
D. 0.67%
C. 2%
What is the formula in finding the total number of conversion periods of a compound interest?
n= (log F/P) / log (1 + i)
What is the formula in finding the periodic interest rate of a compound interest?
i = (F/P) ^ (1/2) - 1
What is the formula in finding the time of a compound interest?
t= ( log F/P )/ [m log (1 + i)]
What is the formula in finding the nominal annual interest rate of a compound interest?
j= m [(F/P)^(1/n) - 1]
A bank offers 7.2% compounded quarterly. What is the correct periodic rate for an investment lasting 5 years?
1.8%
An investment of ₱25,000 becomes ₱40,000 after some years at 8% compounded quarterly. Which variable is being determined when solving for the unknown duration?
A. P
B. j
C. m
D. t
D. t
Which change would generally make the investment reach the target sooner, assuming everything else remains constant?
A. Decreasing the interest rate
B. Decreasing the compounding frequency
C. Decreasing the principal
D. Increasing the interest rate
D. Increasing the interest rate
Investment A earns 6% compounded annually, while Investment B earns 6% compounded quarterly. If the same principal and investment period are used, which will generally have the greater future value?
A. Investment A
B. Investment B
C. They will always be equal
D. It depends only on the principal
B. Investment B
A principal of ₱80,000 is invested at 7.5% compounded semi-annually. After how many conversion periods will the investment have been earning interest for 6 years?
12
How long will it take for an investment to double if it earns 10% compounded annually?
7.27 years
A certain amount is invested at 11% compounded monthly. How long will it take for the investment to become thrice its original value?
10 years
A principal of ₱85,000 is invested at 6.8% compounded monthly for 7 years. During the final year, the interest rate is increased to 8% compounded quarterly. What is the final accumulated value?
Php 138, 201. 1337