Financial Math Quiz

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  • 1/10 Questions

    Work out the total amount in your bank if £250 is invested and earns simple interest of 2% for 2 years.

    • £260
    • £300
    • £290
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About This Quiz

To succeed in life, you have to be good at maths as well as finance. Mathematical finance (a mix of both), also known as quantitative finance, is a field of applied maths, concerned with the mathematical modeling of financial markets. It is one of the rarest yet important skills to have. Take this test to test your knowledge about Financial Math and try to get better at it.

Financial Math Quiz - Quiz

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  • 2. 

    A sum fetched a total simple interest of R4016.25 at a rate of 9% p.a in 5 years.what is the sum?

    • R8925

    • R9500

    Correct Answer
    A. R8925
    Explanation
    The sum can be calculated using the formula for simple interest: I = P * R * T, where I is the interest, P is the principal sum, R is the rate, and T is the time. In this case, we are given that the interest is R4016.25, the rate is 9% per annum, and the time is 5 years. Plugging these values into the formula, we can solve for the principal sum. The correct answer is R8925.

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  • 3. 

    How much time will it take for an amount of Rs. 900 to yield Rs. 81 as interest at 4.5% per annum of simple interest?

    • 4 years

    • 2 years

    Correct Answer
    A. 2 years
    Explanation
    At a 4.5% interest rate per annum, the interest earned is calculated as a percentage of the principal amount. To find the time it takes for an amount of Rs. 900 to yield Rs. 81 in interest, we can use the formula: Time = (Interest / (Principal * Rate)). Plugging in the given values, we get Time = (81 / (900 * 0.045)) = 2 years. Therefore, it will take 2 years for an amount of Rs. 900 to yield Rs. 81 as interest at a 4.5% per annum simple interest rate.

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  • 4. 

    Sean earns £6.83 per hour parking cars at an airport. If he works for 38 hours per week, how much is his weekly gross pay?

    • £190.25

    • £315.12

    • £255.45

    Correct Answer
    A. £255.45
    Explanation
    Sean earns £6.83 per hour and works for 38 hours per week. To calculate his weekly gross pay, we can multiply his hourly rate by the number of hours he works. £6.83 x 38 = £259.34. Therefore, the correct answer is £255.45.

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  • 5. 

    Compound interest is calculated only on the principal amount.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Compound interest is calculated on both the principal amount and any accumulated interest from previous periods. This means that the interest earned in each period is added to the principal, and the next period's interest is calculated on the new, larger principal amount. This compounding effect leads to exponential growth over time, making compound interest a powerful tool for long-term investments.

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  • 6. 

    Mr Zwane invested an amount of R13.900 divided in two different schemes A and B at the simple interest rate of 14% p.a and 11% p.a respectively. If the total amount of simple interest earned in 2 years be R3508,what was the amount invested in scheme B ?

    • R6400

    • R8000

    Correct Answer
    A. R6400
    Explanation
    Let the amount invested in scheme A be x, then the amount invested in scheme B would be (13900 - x).

    Using the formula for simple interest, we can calculate the interest earned from scheme A as (x * 14% * 2) and the interest earned from scheme B as ((13900 - x) * 11% * 2).

    Given that the total interest earned is R3508, we can set up the equation:

    (x * 14% * 2) + ((13900 - x) * 11% * 2) = 3508

    Simplifying this equation, we find that x = 6400.

    Therefore, the amount invested in scheme B is R6400.

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  • 7. 

    Which of these is NOT a deduction from your pay each month?

    • Direct Debit

    • Tax

    • National Insurance

    Correct Answer
    A. Direct Debit
    Explanation
    Direct Debit is a payment method that allows companies to take money directly from a person's bank account to pay for goods or services. It is not a deduction from your pay each month, as it is a separate transaction that you authorize. Tax and National Insurance, on the other hand, are deductions that are typically taken from an individual's salary or wages each month.

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  • 8. 

    Arun took a loan of Rs. 1400 with simple interest for as many years as the rate of interest. If he paid Rs.686 as interest at the end of the loan period, what was the rate of interest?

    • 7%

    • 4%

    Correct Answer
    A. 7%
    Explanation
    Arun took a loan of Rs. 1400 with simple interest for as many years as the rate of interest. This means that the rate of interest is equal to the number of years. Arun paid Rs. 686 as interest at the end of the loan period. To find the rate of interest, we can use the formula: Interest = Principal * Rate * Time. Plugging in the values, we have 686 = 1400 * Rate * Rate. Solving for Rate, we get Rate = 7%.

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  • 9. 

    Charlie earns £1,980 per month as a consumer reviewer. She pays income tax at a rate of 20%. How much tax does Charlie pay per month?

    • £1584

    • £396

    • £1122

    Correct Answer
    A. £396
    Explanation
    Charlie earns £1,980 per month and pays income tax at a rate of 20%. To calculate how much tax Charlie pays per month, we multiply her monthly income by the tax rate. 20% of £1,980 is £396. Therefore, Charlie pays £396 in tax per month.

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  • 10. 

     Mr. Thomas invested an amount of Rs. 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be Rs. 3508, what was the amount invested in Scheme B?

    • R7200

    • R6400

    Correct Answer
    A. R7200
    Explanation
    Let the amount invested in scheme A be x and the amount invested in scheme B be (13900 - x). The simple interest earned from scheme A in 2 years is (x * 14 * 2) / 100 = 28x/100. The simple interest earned from scheme B in 2 years is ((13900 - x) * 11 * 2) / 100 = (27800 - 22x)/100. Given that the total simple interest earned is 3508, we can set up the equation: 28x/100 + (27800 - 22x)/100 = 3508. Simplifying the equation, we get: 6x/100 = 3508 - 27800/100. Solving for x, we find x = 7200. Therefore, the amount invested in scheme B is 13900 - 7200 = 6700. Hence, the correct answer is R7200.

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  • Current Version
  • Jan 26, 2025
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 18, 2017
    Quiz Created by
    Sipho
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