Financial Applications Question Preview (ID: 8043)
Chapter 7 - Financial Applications Review.
TEACHERS: click here for quick copy question ID numbers.
Karl borrows $500 for 4 years at an annual simple interest rate of 12% per year. What is the amount that must be repaid?
a) $60
b) $240
c) $560
d) $740
Jasmine invests $400 at 8% annual interest, compounded annually. How much interest will be earned after 5 years?
a) $160
b) $187.73
c) $560
d) $587.73
If an amount is invested at 6.5% per year, compounded semi-annually, for 3 years, determine the number of compounding periods and the interest rate per compounding period.
a) n=3, i = 0.065
b) n= 6, i=0.0325
c) n=1.5, i=0.13
d) n=12, i=0.01625
An amount is deposited into an account that earns 9% per year, compounded quarterly. After 6 years, the amount in the account is $597.02. What is the present value?
a) $350.00
b) $355.98
c) $404.24
d) $421.36
Deanna invests $500 at 8% per year simple interest. She puts money in the bank on July 1 and takes it out on December 3. How much money does she take out?
a) $515.99
b) $506.99
c) $516.99
d) $517.99
Leon has $3000 that he wants to invest for 6 years. Which options should he choose? Option A: 5.2% annual interest, compounded quarterly OR Option B: 5% annual interest, compounded monthly.
a) Option A
b) Option B
c) Both Option A and B
d) None
You invest $1000 at 6% per year, compounded quarterly, for 3 years. What interest rate, compounded monthly, will give the same results?
a) 4.25%
b) 3.44%
c) 5.15%
d) 5.97%
An account paying 7.25% annual interest, compounded semi-annually, has a future value of $1429 in 8 years. What is the present value of the account? AND How much more interest will have been earned than if simple interest was paid?
a) $805.50; $145.76
b) $808.35; $151.81
c) $809.11; $153.71
d) $808.35; $149.83
To have $5000 at the end of 8 years, how much do you need to invest today, at 6% per annum, compounded semi-annually?
a) $2987.03
b) $3110.47
c) $3115.83
d) $3101.19
Jerry deposited $300 into an account that earns 6.7% annual interest, compounded daily. When he closed the account, the amount had grown to $348.56. How long was the money invested?
a) 800 days
b) 813 days
c) 817 days
d) 821 days
Play Games with the Questions above at ReviewGameZone.com
To play games using the questions from above, visit ReviewGameZone.com and enter game ID number: 8043 in the upper right hand corner or click here.
To play games using the questions from above, visit ReviewGameZone.com and enter game ID number: 8043 in the upper right hand corner or click here.
TEACHERS / EDUCATORS
Log In | Sign Up / Register
Log In | Sign Up / Register