This quiz works best with JavaScript enabled. Home > Unit V Mathematical Reasoning And Aptitude > Compound Interest – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Compound Interest Quiz 4 (10 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Samantha made an initial investment of $ 16,500 into her retirement account. It will pay 12.5% interest compounded annually. What will her balance be after twenty years? A) 173,994.05. B) 186,789.26. C) 157,494.05. D) 152,383.26. Show Answer Correct Answer: A) 173,994.05. 2. Laura and Mike know that in 10 years they are going to have to come up with $ 15,000 for a deposit on a home. How much should they deposit in their account that yields 6% interest, compounded monthly, in order to have that amount? Round to the nearest cent. A) 8,244.49. B) 9,244.49. C) 10,244.49. D) 27290.95. Show Answer Correct Answer: A) 8,244.49. 3. Find the compound interest:Principal: $ 1735Interest Rate: 0.8%Time: 1 year A) $ 1,388. B) $ 138.80. C) $ 13.88. D) None of the answers are correct. Show Answer Correct Answer: C) $ 13.88. 4. Find the INTEREST for a six-year CD for $ 5000 at an interest rate of 4%, compounded annually. A) $ 1,326.60. B) $ 6,326.60. C) $ 5,100.84. D) $ 100.84. Show Answer Correct Answer: A) $ 1,326.60. 5. If you have the same principal($ ), the same rate(%) and the same amount of time(years), which will earn you more? A) Simple because the formula just gives you the interest. B) Compound because the formula gives you the total amount. C) Simple because its easier to find. D) Compound because you earn interest on principal and interest earned. Show Answer Correct Answer: D) Compound because you earn interest on principal and interest earned. 6. What does future value interest factor take? A) Discounting rate. B) Inflation rate. C) Compounding rate. D) Deflation rate. Show Answer Correct Answer: C) Compounding rate. 7. If you have a present value of $ 1,200 and want to find the future value after 10 years at an interest rate of 5%, what is the future value? A) $ 2,100.50. B) $ 1,500.00. C) $ 1,800.75. D) $ 1,954.24. Show Answer Correct Answer: D) $ 1,954.24. 8. Calculating present value or ..... is simply the inverse of calculating future value or ...... A) Compounding, discounting. B) Discounting, compounding. C) Ordinary annuity, annuity due. D) Annuity due, ordinary annuity. Show Answer Correct Answer: B) Discounting, compounding. 9. A bank is offering 7% annual compound interest on a savings account. If you deposit $ 1,500, what will be the total amount of money in your savings account after three years? A) $ 337.56. B) $ 1837.56. C) $ 31500. D) $ 30000. Show Answer Correct Answer: B) $ 1837.56. 10. Mr. A will require approx. 15,00,000 for his daughter marriage 10 years from now. How much lump sum amount he need to invest today assuming he gets a rate of 7% A) 12,00,000. B) 8,00,000. C) 7,50,000. D) 10,00,000. Show Answer Correct Answer: C) 7,50,000. ← PreviousNext →Related QuizzesCompound Interest Quiz 1Compound Interest Quiz 2Compound Interest Quiz 3Compound 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