1.

If you invest P5000 at an annual interest rate of 6% compounded annually, how much money will
you have after 10 years?
A) P7431.18
B) P6727.50
C) P9010.05
D) P8954.24
Answer: D
2. If you borrow P2000 at an annual interest rate of 8% compounded quarterly, how much will you
owe after 2 years?
A) P2240
B) P2166.40
C) P2343.32
D) P2321.60
Answer: C

3. If the future value of an investment after 4 years is P8000, and the annual interest rate is 12%
compounded quarterly, what was the principal amount?
A) P4985.36
B) P6103.39
C) P6789.92
D) P7000
Answer: A

4. If the future value of an investment after 3 years is P5000, the annual interest rate is 8%, and the
interest is compounded annually, what is the principal amount?
A) P4160
B) P4583.33
C) P3,969.20
D) P4800
Answer: C

5. If an investment grows to P12,000 after 2 years with an annual compound interest rate of 10%
compounded annually, what was the initial principal amount?
A) P9,000
B) P9,917.36
C) P9,900
D) P10,000
Answer: B

6. The effective annual rate of interest corresponding to a nominal rate of 8% per annum payable half-
yearly is:
A. 8.16%
B. 8.6%
C. 8.23%
D. 8.8%

Answer : A

7. Carlos takes out a loan to pay for his car. The stated interest rate of the loan is 6%. If the interest on
the loan is compounded quarterly, what is the effective annual rate as a decimal?
A. 6.18%
B. 6.17%
C. 6. 19%
D. 6. 16%

Answer: B
8. Yeonmi invests $2,000 at 4% interest compounded daily. What is the effective annual rate in 2023
as a percentage?
A. 4.04%
B. 4.03%
C. 4.02%
D. 4.01%

Answer: D

9. Alex's checking account earns 0.2% interest compounded monthly. What is the EAR of that
account?
A. 0.01%
B. 0.02%
C. 0.10%
D. 0.20%

Answer: A

10. A sum of money becomes P8000 after 5 years with an annual compound interest rate of 7%
compounded semi-annually. What was the original principal amount?

A) P6500
B) P6800
C) P5671.35
D) P7500

Answer: C

11. If you borrow P4000 at an annual interest rate of 9% compounded quarterly, how much will you
owe after 3 years?

A) P5,224.20
B) P4890.67
C) P4902.81
D) P4925.64

Answer: A

12. If you invest P2000 at an annual interest rate of 5% compounded annually, how much money will
you have after 4 years?

A) P2420
B) P2431. 01
C) P2440
D) P2450

Answer: B

13. Nico invests P7000 in a savings account with an annual interest rate of 3% compounded quarterly.
How much will she have after 3 years?

A) P3184.80
B) P3204.80
C) P7656.65
D) P3244.80
Answer: C

14. Sarah invests P3000 in a savings account with an annual interest rate of 6% compounded semi-
annually. How much will she have after 2 years?

A) P3184.80
B) P3204.80
C) P3,376.53
D) P3244.80

Answer: C

15. If you borrow $2000 at an annual interest rate of 10% compounded annually, how much will you
owe after 5 years?

A) P3221.02
B) $3250
C) $3300
D) $3350

Answer: A

16. If you invest P1000 at an annual interest rate of 5% compounded quarterly, what will be the total
amount after 10 years?

A) P1628.89
B) P1643.62
C) P1678.89
D) P1706.89

Answer: B

17. If the future value of an investment after 3 years is P4000, the annual interest rate is 6%, and the
interest is compounded annually, what is the principal amount?

A) P3400
B) P3500
C) P3600
D) P3358.52

Answer: D

18. A sum of money becomes P7500 in 4 years with an annual compound interest rate of 8%
compounded semi-annually?
A) P1800
B) P1850
C) P1900
D) P5480.18

Answer: D

19. If the future value of an investment after 4 years is P6000, the annual interest rate is 4%, and the
interest is compounded semi-annually, what is the principal amount?
A) P3400
B) P3500
C) P5,120.94
D) P3358.52
Answer: C
20. If you invest P4000 at an annual interest rate of 9% compounded quarterly, what will be the total
amount after 2 years?

A) P1628.89
B) P4779.32
C) P1678.89
D) P1706.89

Answer: B