SUMMATIVE TEST WEEK 1 – 4

GENERAL MATHEMATICS
Choose the best/ correct answer. Write the letter of your choice on a SEPARATE sheet of paper.

1. A person who invests the money or makes the fund available

a. Debtor b. Creditor c. borrower d. co-maker
2. It is the amount of money borrowed or invested on the origin date.
a. Face value b. Principal c. Interest d. Maturity value
3.A type of compounding period that applies two times a year.
a. Annually b. Monthly c. Semi-annually d. Quarterly
4. How much interest is charged when P50,000 is borrowed for 9 months at an annual simple interest rate of 10%?
a. P3,000 b. P9,500 c. P5,050 d. P3,750
5. What is the total amount of money in a savings account after t years at an interest rate r?
a. Principal b. Interest c. Maturity value d. Term
6. At what simple interest rate per annum will P25,000 accumulate to P33,000 in 5 years?
a. 6.4% b. 12% c. 7.2% d. 5.5%
7. How much money should a student place in a time deposit in a bank that pays 1.1% compounded annually so that
he will have P200,000 after 6 years?
a. Around P190,000 b. Around P150,000 c. Around P100,000 d. Around P130,000
8. Accumulate P15,000 for 2 years at 25% on compounded interest per annum.
a. P20,120.50 b. P23,437.50 c. P21,120.50 d. P23,120.50
9. How much time (t) is needed for money to triple if invested at 9% compounded semi-annually?
a. 10.5 years b. 6.5 years c. 15.5 years d. 12.5 years
10. Suppose you won ₱10,000.00 and you plan to invest it for 5 years. A cooperative group (A) offers 2% simple
interest rate per year while a bank (B) offers 2% compounded annually. Which of the two offers is better?
a. A b. B c. equal offers d. unpredictable
11. How much interest is charged when ₱50,000.00 is borrowed for one year at an annual interest rate of 10%?
a. P500 b. P5000 c. P50000 d. P500,000
12. Mary Rose is planning to invest ₱20,000.00. At what rate (i) compounded semi-annually will accumulate her
money to ₱25,000.00 in 3 years?
a. 30.79% b. 70.58% c.3.79% d.7.58%
13. Jeff invested ₱150,000.00 at 10% compounded annually. He plans to get this amount after 6 years for his son’s
college education. How much will he get?
a. 159,228.02 b. 200,432.03 c. 265,734.15 d. 280,321.16
14. Which of the following refers to a sequence of payments made at equal (fixed) intervals or periods of time?
a. Annuity b. Mortgage c. Amortization d. Investment
15. Paolo borrowed P100,000. He agrees to pay the principal plus interest by paying an equal amount of money each
year for 3 years. What should be his annual payment if interest is 8% compounded annually?
a. P38,803.35 b. P42,367.25 c. P35,327.50 d. P41,990.40
16. What kind of annuity does not begin until a given time interval has passed?
a. Ordinary b. Annual c. Immediate d. Deferred
17. Emma availed of a cash loan that gave her an option to pay P10,000 monthly for 1 year. The first payment is due
after 6 months. How much is the present value of the loan if the interest rate is 12% converted monthly?
a. P39,441.14 b. P107,088.20 c. P1,089,533.99 d. P57,922.41
For 18-20
Argin paid ₱200,000.00 as down payment for a car. The remaining amount is to be settled by paying
₱16,200.00 at the end of each month for 5 years. If interest is 10.5% compounded monthly,

18. How much is his monthly payment?

a. 16,000 b. 16,200 c. 200,000 d. 216,200
19. How many payments (n) are there in the entire term?
a. 5 b. 12 c. 60 d. 120
20. What is the cash price of the car?
a. 210,567.20 b. 953,702.20 c. 1,210,112.20 d. 1,310,113.20

PROBLEM SOLVING (10 points)

Identify the given and show your complete solution.

A commercial space rental is being paid at the beginning of the month for P 10,000.00, compounded monthly at 12%.
What is the future value of the one-year rental?