This quiz works best with JavaScript enabled. Home > Unit V Mathematical Reasoning And Aptitude > Compound Interest – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Compound Interest Quiz 2 (10 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Jose invests $ 200 into an account at a rate 2%. He plans on keeping the account open for 15 years. If it is a compound interest account, about how much money will he have in the account after 15 years? A) $ 60. B) $ 70. C) $ 260. D) $ 270. Show Answer Correct Answer: D) $ 270. 2. Michelle has a balance of $ 950 in a savings account that pays 3% interest compounded annually. If Michelle makes no deposits or withdrawals, how much money will be in her savings account after 2 years? A) $ 954.81. B) $ 1,004.00. C) $ 1,007.00. D) $ 1,007.86. Show Answer Correct Answer: D) $ 1,007.86. 3. For any given interest rate and compounding frequency, there is always an equivalent annually compounded rate. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 4. Jacob borrows $ 500 from Abraham and agrees to have the loan compounded annually for 5 years with an interest rate of 2.5%. How much will the total amount be that Jacob owes? A) $ 565.70. B) $ 262609.38. C) $ 65.70. D) $ 630.20. Show Answer Correct Answer: A) $ 565.70. 5. On lending a certain sum of money on C.I. one gets Rs.9050 in 2 years and Rs.9500 in 3 years. What is the rate of interest? A) 5%. B) 4.50%. Show Answer Correct Answer: A) 5%. 6. Computing the future value of an amount of money for any specified time period requires knowledge of the amount of principal and the interest rate A) True. B) False. Show Answer Correct Answer: A) True. 7. A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1$^{st}$ January and 1$^{st}$ July of a year. At the end of the year, the amount he would have gained by way of interest is: A) Rs. 121. B) Rs. 122. C) Rs. 123. D) Rs. 124. Show Answer Correct Answer: A) Rs. 121. 8. Find the compound interest on Rs. 16000 at the rate of 5% for three years. A) Rs.3511. B) Rs.2522. C) Rs.1733. D) Rs.4566. Show Answer Correct Answer: B) Rs.2522. 9. Heatherinvested $ 8,000 in a 4-year Certificate of Deposit (CD) that pays 4.1% interestcompounded annually. What is the value of the CD at the end of the 4 years? A) $ 9,394.92. B) $ 9,312.00. C) $ 1394.00. D) $ 1312.00. Show Answer Correct Answer: A) $ 9,394.92. 10. Jose wants to save money for a house and finds two accounts that pay 3% in interest. He wants to invest $ 3000. He has 2 options to invest his money. Option A is a simple interest account with a time period of 10 years. Option B is a compound interest account with a time period of 12 years. What would be his account balance in Option B? A) $ 4,277.28. B) $ 900. C) $ 1,277.28. D) $ 1,080. Show Answer Correct Answer: A) $ 4,277.28. ← PreviousNext →Related QuizzesCompound Interest Quiz 1Compound Interest Quiz 3Compound Interest Quiz 4Compound Interest Quiz 5Compound Interest Quiz 6Compound Interest Quiz 7Compound Interest Quiz 8Compound Interest Quiz 9Compound Interest Quiz 10Compound Interest Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books