This quiz works best with JavaScript enabled. Home > Unit V Mathematical Reasoning And Aptitude > Compound Interest – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Compound Interest Quiz 10 (10 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Compounding refers to: A) Reducing value of future money. B) Converting present value into future value. C) Finding today's value. D) Depreciating assets. Show Answer Correct Answer: B) Converting present value into future value. 2. The current balance in Marianne's savings account is $ 525. The account pays 3.5% compounded annually. If she makes no deposits or withdrawals for the next 4 years, her savings account balance will be- A) $ 588.00. B) $ 590.89. C) $ 598.50. D) $ 602.45. Show Answer Correct Answer: D) $ 602.45. 3. The process of finding out future value from a current amount is called ..... A) Discounting. B) Compounding. C) All of the Above. D) None of the Above. Show Answer Correct Answer: B) Compounding. 4. Max obtained a new credit card from a national bank, MBNA, with stated rate of 12% per year, compounded monthly. For a $ 1000 balance at beginning of the year, determine effective annual rate A) 12,68. B) 13,68. C) 14,68. D) 15,68. Show Answer Correct Answer: A) 12,68. 5. You have been offered an investment that promises to double your money every nine years. Considering the rule of 72, what is your approximate rate of return on the investment? A) 8%. B) 9%. C) 14%. D) 10%. Show Answer Correct Answer: A) 8%. 6. Jodi has just started a new job with a yearly salary of $ 45 400. Each year she will receive a pay increase of 2%. After three years her salary will be closest to: A) $ 45 400. B) $ 19 140. C) $ 47 234. D) $ 48 124. E) $ 48 180. Show Answer Correct Answer: E) $ 48 180. 7. Interest can be compounded on any given frequency schedule, from continuous to daily to annually. A) True. B) False. Show Answer Correct Answer: A) True. 8. What is the compound value of Rs. 10,000 at the end of 3rd year at 12% interest when interest is calculated on quarterly basis? A) 14050. B) 13500. C) 14260. D) 15430. Show Answer Correct Answer: C) 14260. 9. "Interest on interest" A) Simple Interest. B) Compound Interest. Show Answer Correct Answer: B) Compound Interest. 10. What is the process of earning interest on both the principal amount and the interest earned? A) Compounding. B) Annuities. C) Opportunity Cost. D) Discounting. Show Answer Correct Answer: A) Compounding. ← PreviousNext →Related QuizzesCompound Interest Quiz 1Compound Interest Quiz 2Compound Interest Quiz 3Compound Interest Quiz 4Compound Interest Quiz 5Compound Interest Quiz 6Compound Interest Quiz 7Compound Interest Quiz 8Compound Interest Quiz 9Compound Interest Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books