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Business Math Answer Key and Solutions

The document contains the answer key for a business math test with 15 multiple choice questions. It also includes 5 word problems with solutions showing calculations for interest, principal, rate, and future and present value of annuities. The answer key indicates the correct response for each of the 15 multiple choice questions is A, C, B, A, B, A, C, A, B, D, B, A, D, C, D, respectively.

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Jennifer Balais Pausal
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166 views2 pages

Business Math Answer Key and Solutions

The document contains the answer key for a business math test with 15 multiple choice questions. It also includes 5 word problems with solutions showing calculations for interest, principal, rate, and future and present value of annuities. The answer key indicates the correct response for each of the 15 multiple choice questions is A, C, B, A, B, A, C, A, B, D, B, A, D, C, D, respectively.

Uploaded by

Jennifer Balais Pausal
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Answer Key – Business Math

1. D
2. C
3. B
4. A
5. B
6. A
7. C
8. A
9. B
10. D
11. B
12. A
13. D
14. C
15. D
Solve with solution:
Find the interest:
1. A bank offers 0.25% annual simple interest rate for a particular deposit. How much
interest will be earned if 1 million pesos is deposited in this savings account for 1
year?
Given: P=1,000 I=0.25% = 0.0025 t=1 year
Is=Prt
Is= (1,000,000)(0.0025)(1)
Is=2,500
Find the amount invested or principal:
2. When invested at an annual interest rate of 7%, the amount earned 11,200 of
simple interest in two years. How much money was originally invested?
Given: r=7% = 0.07 t=2 years Is=11,200
P= Is
rt

P= 11,200
(0.07)(2)

P=80,000
Find the rate:
3. If an entrepreneur applies for a loan amounting to 500,000 in a bank, the simple
interest of which is 157, 500 for 3 years, what interest rate is being charged?
Given: P=500,000 Is=157,500 t=3 years
r=Is
Pt

r= 157,500
(500,000)(3)

r= 0.105=10.5%

Find the future Value of general annuity:


4. John deposited ₱2,000 monthly in the bank that pays 5% compounded annually.
How much will be in his bank account after 4 years?

Find the present Value of general annuity:


5. Lorie borrowed money from Jude. She agrees to pay the principal plus interest by
paying ₱17,000 each year for 8 years. How much money did she borrowed if the
interest is 5% compounded semi-annually?

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