This quiz works best with JavaScript enabled. Home > Unit V Mathematical Reasoning And Aptitude > Compound Interest – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Compound Interest Quiz 7 (10 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the compound value if you invest Rs. 1,000 at 10% for 3 years? A) Rs. 1,331. B) Rs. 133.1. C) Rs. 13.31. D) Rs. 1.331. Show Answer Correct Answer: A) Rs. 1,331. 2. In some investment accounts interest is computed on interest that has been earned in previous years. What is this method of computing interest called? A) Compound interest. B) Double interest. C) Simple interest. D) Not enough information. Show Answer Correct Answer: A) Compound interest. 3. Vishal invested an amount of Rs. 50000 in fixed deposit at 8% per annum compound interest for 2 years. What amount Vishal will get at the end of 2 years? A) 58320. B) 8000. C) 8320. D) 58000. Show Answer Correct Answer: A) 58320. 4. Rosa invests her tax return check into an account with a compounded interest rate of 1 3/4 %. She plans on keeping the account open for 12 years. If she has $ 1600.87 in her account at the end of 12 years, approximately how much was her initial investment? A) $ 1,300. B) $ 1,970. C) $ 7,690. D) $ 11,000. Show Answer Correct Answer: A) $ 1,300. 5. Steve deposited$ 5,000 in a savings account that pays 4% interest compounded annually. Whichequation could be used to find the value of the account after 3 years? A) A = 5,000(1 + 4)$^{3}$. B) A = 5,000(1 + 0.04)$^{3}$. C) A = 5,000(1 + 0.4) x 3. D) A = 5,000(0.04)$^{3}$. Show Answer Correct Answer: B) A = 5,000(1 + 0.04)$^{3}$. 6. If you invest $ 2,000 at an annual interest rate of 6% for 4 years, what will be the Future Value? A) 3000.00. B) 2600.50. C) 2524.95. D) 2400.00. Show Answer Correct Answer: C) 2524.95. 7. Calculate the value 5 year hence of a deposit of Rs 1000 made today if the interest rate is 9% A) 1543.65. B) 1470.56. C) 1538.62. D) 1629.76. Show Answer Correct Answer: C) 1538.62. 8. What investment phenomenon involves the process of earning interest on interest, significantly increasing the value of your investment over time? A) Simple Interest. B) Compounding. C) Dividend Reinvestment. D) Discounting. Show Answer Correct Answer: B) Compounding. 9. The process of accumulating interest in an investment over time to earn more interest is called: A) Discounting. B) Compounding. C) Complexing. D) Indexing. Show Answer Correct Answer: B) Compounding. 10. What is the impact of increasing the interest rate on the Future Value of an investment? A) Future Value is only affected by the initial investment amount. B) The Future Value of an investment increases with higher interest rates. C) The Future Value decreases with higher interest rates. D) Interest rates have no effect on Future Value. Show Answer Correct Answer: B) The Future Value of an investment increases with higher interest rates. ← PreviousNext →Related QuizzesCompound Interest Quiz 1Compound Interest Quiz 2Compound Interest Quiz 3Compound Interest Quiz 4Compound Interest Quiz 5Compound Interest Quiz 6Compound Interest Quiz 8Compound Interest Quiz 9Compound Interest Quiz 10Compound Interest Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books