This quiz works best with JavaScript enabled. Home > Unit V Mathematical Reasoning And Aptitude > Compound Interest – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Compound Interest Quiz 13 (10 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. You invest $ 400 for 5 years at an interest rate of 4.29% each year. Which equation models this? A) Y=400(1-0.0429)$^{5}$. B) Y=400(1+.0429)$^{5}$. C) Y=400(1+ 4.29)$^{5}$. D) Y=400e$^{0.049*5}$. Show Answer Correct Answer: B) Y=400(1+.0429)$^{5}$. 2. Paul deposits $ 5000 in a bank which pays a compund interest rate of 4% per year. How much will he have in 6 years. A) $ 4866.61. B) $ 5628.40. C) $ 6077.53. D) $ 6326.60. Show Answer Correct Answer: D) $ 6326.60. 3. Compound interest simply means that the interest associated with a bank account, loan, or investment increases exponentially-rather than linearly-over time A) True. B) False. Show Answer Correct Answer: A) True. 4. A sum of money doubles itself at compound interest in 15 years. In how many years it will become eight times? A) 30. B) 45. C) 50. D) 60. Show Answer Correct Answer: B) 45. 5. Find the value of Rs. 10,000 earning 5% interest per year after two years. A) Rs. 11,025. B) Rs. 11,050. C) Rs. 10,500. D) Rs, 10,550. Show Answer Correct Answer: A) Rs. 11,025. 6. An employee put $ 5,000.00 in a retirement account that offers 9% interest compounded annually. The employee makes no additional deposits or withdrawals. Which amount is closest to the interest the employee will have earned at the end of 5 years? A) $ 229.09. B) $ 450.00. C) $ 2,250.00. D) $ 2,693.12. Show Answer Correct Answer: D) $ 2,693.12. 7. How does the amount of interest earned in each period change with compound interest? (a) A) It decreases over time. B) It remains constant over time. C) It increases over time. D) It fluctuates based on market conditions. Show Answer Correct Answer: C) It increases over time. 8. Which of the following earns interest on both the principal and the accumulated interest? A) Simple Interest. B) Discounting. C) Compound Interest. D) Inflation. Show Answer Correct Answer: C) Compound Interest. 9. Sofia deposited $ 1,700 into a savings account that accumulates 1.8% interest. If she keeps the money in the account for 7 years, how much money will be in the account? A) $ 214.20. B) $ 1,914.20. C) $ 21,420.00. D) $ 23,120.00. Show Answer Correct Answer: B) $ 1,914.20. 10. Process of calculating future value of money from present value is classified as A) Compounding. B) Discounting. C) Money value. D) Stock value. 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 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books