PRE-ASSESSMENT

Direction. Encircle/Highlight the correct answer.

1. Steady rise in the general level of prices is known as:

Inflation B. Interest

B. Time Value of Money D. Principal

2.The idea that money to be paid out or received in the future is not equivalent to money paid out or received today

SMART Money

Time Value of Money

PV/FV Money

Compound Money

3. The A in SMART Goals stands for

Acceptable

Additional

Attainable

Accurate

4. Yolanda invests P7,300 at 6% interest compounded annually for four years. What is the future value of this investment?

P9,216.08

P6,236.83

P9,246.57

P6,240.07

5. You invest P800 in an account that pays 6% interest, compounded annually. How much money do you have after five years? Round your answers to the nearest cent.

P898.09

P1070.58

P1710.58

P975.68

6. Katie invested P6,500 in a savings account earning 12% interest compounded quarterly. What is the future value of this investment after five years? Round your answers to the nearest cent.

P1,235,322.65

P6,895.85

P11,739.72

P6,901.32

7. A fast way to estimate how long it will take your savings to double with compound interest is known as

70-20-10 Rule

Rule of 72

8. You invest P475 in an account that pays 3% simple interest annually. How much money do you have after five years?

P546.24

P544.46

P543.25

P546.25

9. Earning interest on interest is called

Extra Interest

Simple Interest

Inflation Interest

Compound Interest

10.The amount money a person expects to have in the future is called

Principal

Future Value

Simple Interest

Present Value