FOURTH QUARTER:

PERFORMANCE TASK # 1
Multiple Choice:
Select the letter of the correct answer and write it on the space before each number.
1. Lucy borrowed an amount at 8% simple interest for 5 years. If she is asked to pay P
35,000.00 at the end of the term, what do you call the P 35,000.00?
a. Maturity value
b. Interest
c. Principal
d. time

2. Lucas loan an amount at 10% simple interest for 4 years. If he needs to pay P
84,000.00 at the end of the term, what do you call the 10%?
a. Time
b. Rate
c. Interest
d. None of the above

3. If P = P50, 000.00; r = 15% compounded annually and t = 10 years, then what is

the compound interest?
a. P 252,277.89
b. P 202,277.89
c. P 152,277.89
d. P 102,277.88

4. If t= 8 years; r= 7% simple interest and P = P 25,000.00 then what is the future

value?
a. P 39,000.00
b. P 24,000.00
c. P 14,000.00
d. P 8,000.00

5. Darrel saved P 40, 000.00 at 5% simple interest for 6 years. At the end of 5 years,
his account contains P 52, 000.00. What do you call P 52, 000.00?
a. Interest
b. Future Value
c. Principal
d. None of the above

6. Renzo borrowed P 4,000 for 5 years at 6% simple interest rate. How much interest
he needs to pay?
a. P 800.00
b. P 1000.00
c. P 1,200.00
d. P 1,500.00

7. Gillian deposited an amount of P 80,000.00 at 6% compounded semiannually for 8

years. If she has a compound amount of P 128,376.52, how much does she gain after
8 years?
a. P 48, 376.52
b. P 84, 400.52
c. P 176,753.04
d. P 208,376.52

8. Clark paid the amount of P 86,000.00 at 8% simple interest for 3 years. How much
does he borrowed?
a. P 16,645.16
b. P 43,220.18
c. P 69,354.84
d. P 102,645.16

9. Eva loan P 60, 000.00 at 12% simple interest for 3 years. At the end of 3 years,
how much does Eva need to pay in the bank?
a. P 21,600.00
b. P 40,000.00
c. P 60,800.00
d. P 81,600.00

10. Ace borrowed P 5,000.00 for 3 years and had to pay P 1,350 simple interest at the
end of the term. What rate of interest did he pay?
a. 8%
b. 9%
c. 10%
d. 12%

11. Which of the following illustrates a simple annuity?

a. Payment for a laptop at the end of each month with interest compounded monthly.
b. Payment for a laptop at the end of each month with interest compounded annually.
c. Payment for a laptop at the end of each month with interest compounded quarterly.
d. All of the above

12. Which of the following illustrates a general annuity?

a. Payment for a phone at the end of each month with interest compounded monthly.
b. Payment for a phone at the end of each month with interest compounded quarterly.
c. Payment for a phone at the end of each year with interest compounded annually.
d. None of the above
13. “Installment payment for a motorcycle at the end of each year with interest
compounded semi-annually” illustrates __________________.
a. general annuity
b. annuity due
c. simple annuity
d. ordinary annuity

14. To pay off for a business loan, he makes a regular payment of P25,000 at the end
of every 6 months and charge him 4% interest quarterly. What kind of annuity does
this problem illustrate?
a. annuity due
b. general annuity
c. ordinary annuity
d. simple annuity

15. Mariano’s farm lot was rented for P50,000 a month with an interest rate of 10%
per annum. What kind of annuity does this problem illustrate?
a. annuity due
b. general annuity
c. ordinary annuity
d. simple annuity

16. To pay for his debt at 12% compounded semi-annually, Reyvan committed for 8
quarterly payments of P24,491.28 each. How much did he borrow? (use j = 0.029563,
n=8)
a. 217,447.26
b. 198,905.89
c. P172,238.61
d. 156,923.45

17. The buyer of a car pays P169,000 cash and P12,000 every month for 5 years. If
money is 10% compounded annually, how much is the cash price of the car? (use j =
0.007974, n=60)
a. 570,464.24
b. P739,464.24
c. 589,218.44
d. 603.445.27

18. In order to save for her high school graduation, Zeinab decided to save P200 at
the end of each month. If the bank pays 0.250% compounded monthly, how much
will her money be at the end of 6 years?
a. P2,402.75
b. P14, 507.02
c. P21, 518.09
d. P15,755.88
19. Find the future value of an ordinary annuity of P5,000 payable semi-annually for
10 years if money is worth 9% compounded annually. (use j = 0.044031, n=20)
a. P155,274.64
b. P65,589.25
c. P267,968.22
d. P738,837.01

20.How much must a person put into the bank today if he wants $50,000 in 5 years at
6% compounded annually?
a. 37,362.91
b. 43,130.44
c. 39,096.56
d. 41,866.42