This quiz works best with JavaScript enabled. Home > Unit V Mathematical Reasoning And Aptitude > Compound Interest – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Compound Interest Quiz 9 (10 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What interest is computed on the principal and also on the accumulated past interests? A) Simple. B) Compound. C) Annuity due. D) Ordinary Annuity. Show Answer Correct Answer: B) Compound. 2. What is the future value of an investment of $ 2,000 at an interest rate of 6% compounded quarterly for 4 years? A) 2536.48. B) 2200.75. C) 2675.30. D) 2400.00. Show Answer Correct Answer: A) 2536.48. 3. Anita borrowed 36,000 rupees for 6 months from a bank, which charge 8% interest compounded half yearly. How much should she pay back the end of 6 months? A) 38880. B) 37440. C) 38440. D) 37880. Show Answer Correct Answer: B) 37440. 4. Paul deposits $ 4000 in a bank which pays a compound interest rate of 5% per year. How much will he have in 7 years. A) $ 4866.61. B) $ 5628.40. C) $ 6077.53. D) $ 6326.60. Show Answer Correct Answer: B) $ 5628.40. 5. When using the formula for compound interest, what is the value of n if an account compounds annually? $A=P\left(1+\frac{r}{n}\right)^{nt}$ A) 1. B) 2. C) 4. D) 12. Show Answer Correct Answer: A) 1. 6. Hei-Hei has $ 1500 in a retirement account earning 5% interest compounded annually. After 5 years how much does Hei-Hei have in the account? A) $ 1750. B) $ 2010.14. C) $ 2500. D) $ 1914.42. Show Answer Correct Answer: D) $ 1914.42. 7. You have $ 50 000 now to invest. If you can earn 10% per annum on your deposit, and can invest for five years, what will be the future value of your deposit (to the nearest dollar) at the end of the investment period? A) $ 150 493. B) $ 80 526. C) $ 99 456. D) $ 85 025. Show Answer Correct Answer: B) $ 80 526. 8. If $ 1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance? A) $ 1,225,54. B) $ 2,225.54. C) $ 22,255.40. D) $ 225.54. Show Answer Correct Answer: B) $ 2,225.54. 9. Trevor wants to have $ 4000 saved up in 3 years for a car. If he invests $ 1500 in a savings account that is compounded annually at an interest rate of 12%, will he have enough money at the end of the 4 years? A) Yes. B) No. Show Answer Correct Answer: B) No. 10. If you have an investment that earns 8% interest compounded annually, how long will it take to triple your investment? A) Approximately 14.27 years. B) Approximately 12.3 years. C) Approximately 20.75 years. D) Approximately 10.5 years. Show Answer Correct Answer: A) Approximately 14.27 years. ← PreviousNext →Related 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 10Compound Interest Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books