GENERAL MATHEMATICS

FINALS

Name: __________________________________ Grade & Strand: ________________

Teacher: ________________________________ Score:________________________

Direction: Read and analyze each item carefully. Encircle the letter
that corresponds to your answer. Good luck and GOD bless!

TEST I.

1. Which of the following statements illustrates simple interest?

A. It is the interest after t years; that the lender receives from the
borrower on the maturity date.
B. It is the interest that is computed on the principal and then
added to it.
C. It is the interest paid or earned for the use of money.
D. It is the interest that is computed on the principal and also on
the accumulated past interests.

2. What do you call to the person (institution) who avails the money of the
funds from the lender?
A. Interest
B. Principal
C. Borrower
D. Creditor

3. Which of the following shows compound interest?

A. Principal = P1000 term = 2 years rate = 5% Interest =
P100
B. Principal = P1000 term = 3 years rate = 5% Interest =
P158
C. Principal = P1500 term = 3 years rate = 10% Interest =
P1,997
D. Principal = P1500 term = 2 years rate = 10% Interest =
P300

4. A bank offers 2.5% annual simple interest rate for a particular deposit.
How much interest will be earned if P200,000 is deposited in the
savings account for 2 years?
A. P 10,000
B. P 100, 000
C. P 210, 000
D. P 300,000

5. John deposited P20,000 in a bank that pays 0.5% simple interest. How
much will be his money after 6 years?
A. P6,000 B. P26,000 C. P600 D. P20,600

6. Which of the following statements illustrates simple annuity?

A. The payments extend over an indefinite length of time.
B. The payment interval is not the same as the interest period.
C. The payment interval is the same as the interest period.
 D. The payments are made at beginning of each payment interval.

7. It refers to an annuity in which the periodic payment is made at the

end of the payment interval.
A. Deferred Annuity
B. Annuity Due
C. Ordinary Annuity
D. General Annuity

8. Which problem illustrates general annuity?

A. The payments are done quarterly but the interest rate being
charged is monthly.
B. The payments are done quarterly and the interest rate being
charged is also
compounded quarterly.
C. The payment is monthly, and the interest rate is compounded
monthly.
D. The payment is annually, and the interest rate is compounded
annually.

9. These are payments made annually.

A. Simple Interest
B. Annuities
C. Principal
D. Compound Interest

10. Which of the following is NOT a form of annuity?

A. house rental
B. life insurance
C. allowance
D. dividend bonds

TEST II.

Direction: Find the unknown principal P, rate r, time t, and interest I by

completing the table. Write your answers below. (SHOW YOUR SOLUTIONS) 2
points each

Principal (P) Rate (r) Time (t) Interest (I)

(1) 8% 15 12,000

100,000 2% (2) 10,000

360,000 (3) 2 3,600

500,000 10.5% 3.34 (4)

880,000 9.25% (5) 203,500
SIMPLE INTEREST

1.
2.
 3.
4.
5.

TEST III. PROBLEM SOLVING. Show your solutions. (15 points each)

1) Find the future value at the end of the last payment period. Payments
of P50,000 each are made at the beginning of each year for 3 years
with interest at 5% compounded annually.

2) Find the present value of an annuity of P1,050 every end of six months
for 2 years if money is worth 5% converted semi-annually.