Read each statement carefully. Choose the letter of the correct answer.

1. The difference between the compound amount and the original principal is called compound interest.
TRUE
False

2. Monthly means twelve periods in one year.
TRUE
False

The formula for compound interest is F = P ( 1 + i )n
TRUE
False

n is the total of conversion period.
TRUE
False

The interest earned on a deposit or charged against a loan depends on P, r, and t.
TRUE
False

t– represent time.
TRUE
False

F = P + I is the formula that we can used for Future Value
TRUE
False

Date when the total amount is due is called maturity date.
TRUE
False

The rate of interest refers to the percentage of the principal per year. It is generally expressed in terms of peso.
TRUE
False

The principal is also known as the present value
TRUE
False

We are given P = P120,000.00 r= 8% t= 1 year, what is the interest in the 1 year?
a. 9600
b. 7200
c. 14,400

We are given P= 4,200.00 t= 9 months and the F= 4,263.00 what is the interest?
a. 163
b. 63
c. 65

We are given P= 4,200.00 t= 9 months and the I= 63 what is the rate in the 9 months?
a. 2%
b. 5%
c. 10%

We are given P= 4,200.00 t= 9 months and the I= 63 what is the rate in the 9 months?
a. 2
b. 4
c. 6

We are given P= 120,000.00 r=8% and t= 18 months what is the interest in the 18 months?
a. 9600
b. 7200
c. 14,400