Home / My courses / BAED-GMAT2111-2212S / Second Quarter Examination / SECOND QUARTER EXAM

Started on Tuesday, 7 February 2023, 7:37 PM

State Finished
Completed on Tuesday, 7 February 2023, 8:01 PM
Time taken 24 mins 4 secs
Marks 49.00/50.00
Grade 98.00 out of 100.00

Question 1 When the total number of conversion periods is 12 and the term is 6 years, then money is compounded
Correct ____________.
Mark 1.00 out
of 1.00
Annually

Monthly

Semi-annually 

Quarterly

Your answer is correct.

Question 2 What is the present value of Ᵽ50,000 due in 7 years if money is worth 10% compounded annually?
Correct

Mark 1.00 out Ᵽ25,657.91

of 1.00
Ᵽ27,656.91

Ᵽ26,557.91

Ᵽ28,567.91

Your answer is correct.

Question 3 It is the money that you earn after a certain period of your money being in a bank for safekeeping.
Correct

Mark 1.00 out Principal

of 1.00
Interest

Future Value

Present Value

Your answer is correct.

Question 4 When money is compounded monthly, the frequency of conversion is _________.

Correct

Mark 1.00 out 365

of 1.00
2

12
 4

Your answer is correct.

Question 5 How long will a principal earn an interest equal to half of it at 5% simple interest?
Correct

Mark 1.00 out 3 years

of 1.00
6 years

9 years

10 years

Your answer is correct.

Question 6 Kenneth borrowed Ᵽ5,000 at 5% annual simple interest rate. If he decided to pay after 1 year and 3
Correct months, how much should he pay by then?
Mark 1.00 out
of 1.00
Ᵽ5,312.50

Ᵽ5,213.50

Ᵽ5,231.50

Ᵽ5,132.50

Your answer is correct.

Question 7 Maricris deposited Ᵽ880,000 in a bank that pays 9.25% simple interest. How much will be her money after
Correct 2.5 years?
Mark 1.00 out
of 1.00
Ᵽ1,803,500.00

Ᵽ1,830,500.00

Ᵽ1,083,600.00

Ᵽ1,083,500.00

Your answer is correct.

Question 8 It is the interest rate that determines the amount of money will earn
Correct

Mark 1.00 out Principal

of 1.00
Term

Rate

Future value
 Your answer is correct.

Question 9 How long will Ᵽ40,000 amount to Ᵽ51,200 if the simple interest rate is at 12% per annum?
Correct

Mark 1.00 out None of the choices

of 1.00
2.33 years

23.3 years

233 years

Your answer is correct.

Question 10 How much should Anne set aside and invest in a fund earning 2% compounded quarterly if she needs
Correct Ᵽ75,000 in 1 year and 3 months?
Mark 1.00 out
of 1.00
Ᵽ73,152.80

Ᵽ70,990.90

Ᵽ71,095.44

Ᵽ70,000.00

Your answer is correct.

Question 11 A savings account in a bank yields 0.25% compound interest annually. Find the future value of Ᵽ25,000 for
Correct 4 years in this savings account. How much interest will be gained?
Mark 1.00 out
of 1.00
Ᵽ26,555.60 ; Ᵽ1,555.60

Ᵽ28,028.12 ; Ᵽ3,028.12

Ᵽ27,540.72 ; Ᵽ2,540.72

Ᵽ25,250.94; Ᵽ250.94

Your answer is correct.

Question 12 It is the amount of time, in years, that the money is borrowed or invested.
Correct

Mark 1.00 out Future value

of 1.00
Rate

Term

Principal
 Your answer is correct.

Question 13
Find the amounts of interest and maturity value of a loan for Ᵽ20,000 at 6% compound interest for 3
Correct years?
Mark 1.00 out
of 1.00
Ᵽ23,820.32 ; Ᵽ3,820.32

Ᵽ24,028.12 ; Ᵽ4,028.12

Ᵽ46,535.20 ; Ᵽ26,535.20

Ᵽ32,587.57 ; Ᵽ12,587.57

Your answer is correct.

Question 14 It is the date on which the money borrowed is to be completely repaid.

Correct

Mark 1.00 out None of the above

of 1.00
Loan date

Maturity date

Origin date

Your answer is correct.

Question 15 It is the original amount of money borrowed or invested.

Correct

Mark 1.00 out Principal

of 1.00
Future Value

Interest

Rate

Your answer is correct.

Question 16 How long will an amount of money double at a simple interest rate of 2% per annum?
Correct

Mark 1.00 out 60 years

of 1.00
70 years

50 years

40 years

Your answer is correct.

Question 17 It is the percentage of increase of investment.
Correct

Mark 1.00 out Principal

of 1.00
Rate

Interest

Maturity Value

Your answer is correct.

Question 18 The person or institution who has money to invest or make available to people who needs to borrow.
Correct

Mark 1.00 out Debtor

of 1.00
Lender

None of the choices

Borrower

Your answer is correct.

Question 19 How much must be deposited by a 15-year old student in a bank that pays 1% compounded annually so
Correct that after 10 years he will save Ᵽ20,000?
Mark 1.00 out
of 1.00
Ᵽ15,000.90

Ᵽ18,105.74

Ᵽ19,327.00

Ᵽ16,113.99

Your answer is correct.

Question 20 How long will Ᵽ250,000 earn an interest of Ᵽ275 at 0.5% simple interest?
Correct

Mark 1.00 out 2.2 years

of 1.00
22 years

2 years

0.22 years

Your answer is correct.

Question 21 Luisa invested a certain amount at 8% simple interest rate per year. After 6 years, the interest she received
Correct amounted to Ᵽ48,000. How much did she invest?
Mark 1.00 out
of 1.00
Ᵽ110,000.00

Ᵽ120,000.00

Ᵽ130,000.00

Ᵽ100,000.00

Your answer is correct.

Question 22 At what simple interest rate will an amount of money double itself in 10 years?
Correct

Mark 1.00 out 30%

of 1.00
40%

10%

20%

Your answer is correct.

Question 23 It is the interest that is computed on the principal then added to it.
Correct

Mark 1.00 out Simple annuity

of 1.00
Simple interest

Compound interest

General annuity

Your answer is correct.

Question 24 It is where compounding and payment period happen at the same time.
Correct

Mark 1.00 out Compound interest

of 1.00
Simple annuity

General annuity

Simple interest

Your answer is correct.

Question 25 In order to have Ᵽ200,000 in 3 years, how much should you invest if the simple interest is 5.5%?
Correct
Mark 1.00 out Ᵽ171,673.82
of 1.00
Ᵽ117,673.83

Ᵽ117,673.82

Ᵽ171,673.83

Your answer is correct.

Question 26 At what simple interest rate per annum will Ᵽ360,000 accumulate to Ᵽ363,600 in 2 years?
Correct

Mark 1.00 out 0.05%

of 1.00
50%

5%

0.5%

Your answer is correct.

Question 27 How much money should Klara place in a time deposit in a bank that pays 1.1% compounded annually so
Correct that she will have Ᵽ200,000 after 6 years?
Mark 1.00 out
of 1.00
Ᵽ113,567.71

Ᵽ164,342.82

Ᵽ157,657.53

Ᵽ187,293.65

Your answer is correct.

Question 28 At what simple interest rate per annum will Ᵽ25,000 accumulate to Ᵽ33,000 in 5 years?
Correct

Mark 1.00 out 6.4%

of 1.00
0.64%

6%

64%

Your answer is correct.

Question 29 How long will Ᵽ157,500 amount to Ᵽ457,000 if the simple interest rate is at 10.5% per annum?
Correct

Mark 1.00 out 8 years

of 1.00
7
 7 years

6 years

5 years

Your answer is correct.

Question 30 When invested at an annual interest rate of 10.5%, an amount earned Ᵽ157,500 of simple interest in five
Correct years. How much money was originally invested?
Mark 1.00 out
of 1.00
Ᵽ30,000.00

Ᵽ3,000.00

Ᵽ300,000.00

Ᵽ300.00

Your answer is correct.

Question 31 Accumulate Ᵽ15,000 for 2 years at 15% compounded monthly.

Correct

Mark 1.00 out Ᵽ18,105.74

of 1.00
Ᵽ20,210.27

Ᵽ25,000.90

Ᵽ16,113.99

Your answer is correct.

Question 32 Angel deposited Ᵽ20,000 in a bank that pays 0.5% simple interest. How much will be her money after 6
Correct years?
Mark 1.00 out
of 1.00
Ᵽ20,500.00

Ᵽ20,800.00

Ᵽ20,700.00

Ᵽ20,600.00

Your answer is correct.

Question 33 It is the amount to be paid to the lender at the end of the term.
Correct

Mark 1.00 out Maturity Value

of 1.00
Principal
 Interest

Rate

Your answer is correct.

Question 34 When invested at an annual interest rate of 7%, an amount earned Ᵽ11,200 of simple interest in two years.
Correct How much money was originally invested?
Mark 1.00 out
of 1.00
Ᵽ800,000.00

Ᵽ80,000.00

Ᵽ8,000.00

Ᵽ800.00

Your answer is correct.

Question 35 At what simple interest rate per annum will Ᵽ50,000 accumulate to Ᵽ59,500 in 2 years?
Correct

Mark 1.00 out 0.95%

of 1.00
9.05%

0.095%

9.5%

Your answer is correct.

Question 36 How long will Ᵽ175,500 amount to Ᵽ500,000 if the simple interest rate is at 10.5% per annum?
Correct

Mark 1.00 out 3.34 years

of 1.00
3.32 years

3.35 years

3.33 years

Your answer is correct.

Question 37 When invested at an annual interest rate of 2.5%, an amount earned Ᵽ1,500 of simple interest in four
Correct years. How much money was originally invested?
Mark 1.00 out
of 1.00
Ᵽ1,500.00

Ᵽ150,000.00

Ᵽ15,000.00
 Ᵽ15,010.00

Your answer is correct.

Question 38 If an entrepreneur applies for a loan amounting to Ᵽ500,000 in a bank, the simple interest of which is
Correct Ᵽ157,500 for 3 years, what interest rate is being charged?
Mark 1.00 out
of 1.00
1.05%

0.105%

105%

10.5%

Your answer is correct.

Question 39 It is the value of the debt or investment at present day.

Incorrect

Mark 0.00 out Rate

of 1.00
Maturity Value 

Interest

Principal

Your answer is incorrect.

Question 40 It is the interest computed on the principal and also on the accumulated past interests.
Correct

Mark 1.00 out General annuity

of 1.00
Simple interest

Simple annuity

Compound interest

Your answer is correct.

Question 41 It is a fraction or a percentage being computed to a sum of money.

Correct

Mark 1.00 out Principal

of 1.00
Present value

Future value

Interest
 Your answer is correct.

Question 42 A businessman invested Ᵽ100,000 in a fund that pays 10.5% compounded annually for 5 years. How much
Correct was in the fund at the end of the term?
Mark 1.00 out
of 1.00
Ᵽ180,115.94

Ᵽ193,547.05

Ᵽ164,744.68

Ᵽ155,960.00

Your answer is correct.

Question 43 In order to have Ᵽ110,000 in 5 years, how much should you invest if the simple interest is 2%?
Correct

Mark 1.00 out Ᵽ90,000.00

of 1.00
Ᵽ100,000.00

Ᵽ70,000.00

Ᵽ80,000.00

Your answer is correct.

Question 44 It is where the payment is not the same as the interest compounding period.
Correct

Mark 1.00 out General annuity

of 1.00
Simple interest

Simple annuity

Compound interest

Your answer is correct.

Question 45
It is the amount paid or earned for the use of money.
Correct

Mark 1.00 out Rate

of 1.00
Maturity Value

Interest

Principal

Your answer is correct

 Your answer is correct.

Question 46 How much money should Joanne invest to obtain an amount of Ᵽ30,000 in 4 years if money earns at 8%
Correct compounded annually?
Mark 1.00 out
of 1.00
Ᵽ20,517.01

Ᵽ23,233.69

Ᵽ22,050.90

Ᵽ25,457.23

Your answer is correct.

Question 47 If an entrepreneur applies for a loan amounting to Ᵽ36,000 in a bank, the simple interest of which is 4,860
Correct for 1.5 years, what interest rate is being charged?
Mark 1.00 out
of 1.00
0.9%

9%

90%

0.09%

Your answer is correct.

Question 48 If Jenny borrowed Ᵽ88,800 at an annual simple interest rate of 10.25% for one and a half year, how much
Correct interest should he pay?
Mark 1.00 out
of 1.00
Ᵽ15,363.00

Ᵽ16,353.00

Ᵽ16,353.00

Ᵽ13,653.00

Your answer is correct.

Question 49 It refers to an investment agreement between a depositor and a financial institution that promises to pay
Correct out a steady amount of money over a term.
Mark 1.00 out
of 1.00
Bonds

Annuity

Interest

Stocks
 Your answer is correct.

Question 50 When the total number of conversion periods is 24 and the term is 6 years, then money is compounded
Correct ____________.
Mark 1.00 out
of 1.00
Semi-annually

Monthly

Annually

Quarterly

Your answer is correct.

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