This quiz works best with JavaScript enabled. Home > Unit V Mathematical Reasoning And Aptitude > Compound Interest – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Compound Interest Quiz 3 (10 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Compound Value also Called A) Present Value. B) Future Value. C) Net Value. D) Both a & b. Show Answer Correct Answer: B) Future Value. 2. Aiydan puts $ 5000 into a savings account with a 3% interest rate. The interest compounds yearly. How much money will he have in his account after 8 years? A) $ 150. B) $ 5300. C) $ 6333.85. D) $ 40786.54. Show Answer Correct Answer: C) $ 6333.85. 3. A plot of land is valued at $ 200,000. It appreciates at 5% each year. What will be its value after 2 years? A) $ 210,000. B) $ 220,000. C) $ 220,500. D) $ 20,000. Show Answer Correct Answer: C) $ 220,500. 4. If Bank A pays interest on a monthly basis and Bank B pays the same interest on a quarterly basis, then investing $ 1,000 in Bank B will lead to a higher future value than investing the same amount in Bank A. A) False. B) Not clear. C) True. D) None of above. Show Answer Correct Answer: A) False. 5. A man invests $ 2,000 in an account that pays 8% interest compounded quarterly. What is the total amount he will have in his account after 10 years? A) $ 4,416.08. B) $ 2,939,543.14. C) $ 43,449.04. D) $ 4,317.85. Show Answer Correct Answer: A) $ 4,416.08. 6. Chelsea put $ 7500 into an account paying 5% compounded continuously. She now has $ 10,643.01. How long has the money been in the account? A) 7 years. B) 6 years. C) 5 years. D) 4 years. Show Answer Correct Answer: A) 7 years. 7. How does the frequency of compounding affect the total amount of interest earned? A) Higher interest rates negate the benefits of compounding. B) Less frequent compounding decreases the total interest earned. C) More frequent compounding increases the total amount of interest earned. D) Compounding frequency has no effect on interest earned. Show Answer Correct Answer: C) More frequent compounding increases the total amount of interest earned. 8. Garrisondeposited $ 500 in an account that earns 5% annual interest compounded annually. If he makes no withdrawals or deposits, howmuch interest will the account earn after 4 years? A) $ 600. B) $ 100. C) $ 607.75. D) $ 107.75. Show Answer Correct Answer: D) $ 107.75. 9. Courtney saved up $ 2,200 working as a waitress over the summer. She put this money into a bank account that earned 5.2% interest and is compounded daily. How much will she have in her account at the end of 4 years? A) $ 2201.25. B) $ 2694.55. C) $ 2707.45. D) $ 2708.63. Show Answer Correct Answer: D) $ 2708.63. 10. Your 6 year investment of $ 40,000 at 14% interest compounded annually is worth how much now? A) $ 47,798.90. B) $ 87,798.90. C) $ 127,798. D) $ 7,798. Show Answer Correct Answer: B) $ 87,798.90. ← PreviousNext →Related QuizzesCompound Interest Quiz 1Compound Interest Quiz 2Compound 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