This quiz works best with JavaScript enabled. Home > Unit V Mathematical Reasoning And Aptitude > Compound Interest – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Compound Interest Quiz 12 (10 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Shashank can invest Rs.3000 a year for next ten years with a given interest rate of 10%.Find out future value. A) 50000. B) 47812. C) 46000. D) 47500. Show Answer Correct Answer: B) 47812. 2. If you are on a compound interest question and it asks you to solve for just the interest amount, what extra step do you have to do? A) Subtract the principal amount from the total amount. B) Add the principal amount and interest amount. C) Use the simple interest formula. D) Multiply the principal and interest amounts. Show Answer Correct Answer: A) Subtract the principal amount from the total amount. 3. Which best describes "compounding"? A) When an amount of interest is subtracted from the Principal. B) When an amount of interest is added to the Principal. C) The future value of the investment. D) Interest earned on the time the money is invested. Show Answer Correct Answer: B) When an amount of interest is added to the Principal. 4. How much would Zion earn on a deposit of $ 10,000 one year at 5.12% compounded daily? A) $ 512.00. B) $ 525.30. C) $ 10,523.30. D) $ 10,512.00. Show Answer Correct Answer: B) $ 525.30. 5. The formula for compound value is: A) FVn = PV (1+i). B) FVn = PV/(1+i). C) FVn = PV (1+i)$^{n}$. D) FVn = (1+i)/PV. Show Answer Correct Answer: C) FVn = PV (1+i)$^{n}$. 6. Explain how interest rates affect the growth of an investment over time. A) Interest rates only affect savings accounts, not investments. B) Lower interest rates always lead to higher investment returns. C) Interest rates significantly influence investment growth; higher rates enhance growth through compounding, while lower rates reduce it. D) Interest rates have no impact on investment growth over time. Show Answer Correct Answer: C) Interest rates significantly influence investment growth; higher rates enhance growth through compounding, while lower rates reduce it. 7. Sara takes out a $ 30000 loan for her new Honda Civic. She will pay back the entire loan at the end of 8 years. It is a compound interest loan with an interest rate of 7.25%. How much will she have to pay at the end of 8 years? A) $ 17400.00. B) $ 30725.00. C) $ 52516.97. D) $ 2351982.31. Show Answer Correct Answer: C) $ 52516.97. 8. If you invest $ 3,000 at an interest rate of 4% compounded semi-annually, what will be the total amount after 5 years? A) $ 3,656.97. B) $ 3,800.25. C) $ 3,200.50. D) $ 3,500.00. Show Answer Correct Answer: A) $ 3,656.97. 9. Gabby deposits $ 800 at 3.87% interest, compounded quarterly. What is her ending balance after one year? A) $ 1,157.50. B) $ 831.41. C) $ 807.74. D) $ 931.22. Show Answer Correct Answer: B) $ 831.41. 10. Future value is the amount of money that will be available at a later date. Future value is also known as ..... A) Discounting. B) Inflation. C) The rate of interest. D) Compounding. Show Answer Correct Answer: D) 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 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books