This quiz works best with JavaScript enabled. Home > Unit V Mathematical Reasoning And Aptitude > Compound Interest – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Compound Interest Quiz 15 (8 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the compounding factor for an investment compounded quarterly? A) 2. B) 3. C) 4. D) 12. Show Answer Correct Answer: C) 4. 2. Will deposits $ 1650 for three years at 3% interest, compounded daily. What is his ending balance? A) $ 1,700.25. B) $ 4,056.85. C) $ 2,103.87. D) $ 1,805.38. Show Answer Correct Answer: D) $ 1,805.38. 3. Avery deposits $ 8000 in a one year CD at 3.2% interest, compounded daily. What is Avery's ending balance? A) $ 8,528.72. B) $ 8,000.70. C) $ 8,256.00. D) $ 8,260.13. Show Answer Correct Answer: D) $ 8,260.13. 4. Logan took out $ 23,400 in student loans to attend college at a compound interest rate of 5%. He deferred (didn't make payments) his loan for two years. What will be his loan balance at the end of the two-year deferment? A) $ 25,798.50. B) $ 24,570.00. C) $ 25,740.00. D) $ 23,400.00. Show Answer Correct Answer: A) $ 25,798.50. 5. Generating "interest on interest" is known as the power of compound interest A) True. B) False. Show Answer Correct Answer: A) True. 6. Which is a purpose of using a geometric recurrence relation in finance? A) To calculate simple interest on investments. B) To model compound interest for investments or loans. C) To determine the principal amount of a loan. D) To track the stock market prices. Show Answer Correct Answer: B) To model compound interest for investments or loans. 7. The value of a residential flat constructed at a cost of Rs 10,00,000 is appreciating at the rate of 10% per year annum. What will be its value 3 years after construction? A) 13,31,000. B) 13,21,000. C) 13,11,000. D) 13,61,000. Show Answer Correct Answer: A) 13,31,000. 8. Suppose you need to pay your air-ticket of $ 2400 for a European trip next year. If you deposit money now, you can earn 7% per annum. How much do you need to invest today? A) $ 1759. B) $ 1968. C) $ 2000. D) $ 2243. Show Answer Correct Answer: D) $ 2243. ← PreviousRelated 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