Financial Problems Quiz! Trivia

10 Questions | Total Attempts: 83

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Financial Problems Quiz! Trivia

Financial problems quiz trivia. There are a lot of math problems involved in the finance discipline. Do you know how to find the interest charged on different loans and deposits or amounts to invest so as to get a certain income? The quiz below is designed to help see just how good you are when it comes to solving some of them. Be sure to check out other quizzes just like it when done.


Questions and Answers
  • 1. 
    Lucy buys a $110,000 home with a 30-year mortgage at 5.4% interest compounded monthly.  What is her monthly payment?
    • A. 

      Single Payment: A = P(1+i)^ n

    • B. 

      Multiple Payments: Solve for Payment(PMT) amount using the FUTURE VALUE EQUATION

    • C. 

      Multiple Payments: Solve for Payment(PMT) amount using the PRESENT VALUE EQUATION

  • 2. 
    You want to accumulate $40000 by your daughter’s 18th birthday by investing in an account that will pay 5.2% interest compounded quarterly. You make a one-time payment on the day she is born.  How much do you need to invest?
    • A. 

      Multiple Payments: FUTURE VALUE EQUATION

    • B. 

      Single Payment: 40,000 = P(1+i)^ n

    • C. 

      Single Payment: A = 40000 (1+i)^ n

    • D. 

      Multiple Payments: PRESENT VALUE EQUATION

  • 3. 
    How much should a face value zero-coupon bond (or treasury bill or savings bond..) maturing in five years be sold for now, if the rate of return is to be 6% compounded annually? The face value of the bond is $2000.00
    • A. 

      Single Payment: in which the unknown is "A = 2000" in A = P(1+i)^n

    • B. 

      Single Payment: in which the unknown is "P = 2000" in A = P(1+i)^n

    • C. 

      Multiple Payments: Future Value Equation

    • D. 

      Multiple Payments: Present Value Equation

  • 4. 
    You can afford monthly deposits of $300 into an account that pays 6% compounded monthly to buy a used car. How long before you will have $9000 to purchase the used car?
    • A. 

      Single Payment: A = P(1 + i)^n

    • B. 

      Multiple Payments: Future Value Equation: in which FV = 9000 and you solve for the exponent "t"

    • C. 

      Multiple Payments: Future Value Equation in which PMT = 300 and you solve for FV

    • D. 

      Single Payment: A = Pe^(rt)

  • 5. 
    If you buy a computer from the manufacturer for $2500 and agree to pay it back in 48 installments at 1.25% per month on the unpaid balance, how much are your monthly payments?
    • A. 

      Single Payment: A = P(1+i) n

    • B. 

      Multiple Payments: Future Value Equation

    • C. 

      Single Payment: A = Pe^(rt)

    • D. 

      Multiple Payments: Present Value Equation

  • 6. 
    Michael invests $2795 into an account that earns 5.25% interest compounded continuously.  In 10 years, how much will he have in the account?
    • A. 

      Single Payment: A = P(1+i)^n P = $2795, A = ?

    • B. 

      Multiple Payments: Future Value Equation

    • C. 

      Single Payment: A = Pe^(rt) P = $2795, A = ?

    • D. 

      Multiple Payments: Present Value Equation

  • 7. 
    Annual payments of $5000 are made for 5 years to repay a loan that was received for an unknown amount at 4.75% compounded annually. How much was the original loan for?
    • A. 

      Single Payment: A = Pe^(rt)

    • B. 

      Single Payment: A = P(1 + +i) ^n

    • C. 

      Multiple Payment: Future Value: Solve for FV

    • D. 

      Multiple Payment: Present Value: Solve for PV

  • 8. 
    Debra has made 120 payments of $100 to repay a loan of $9000 that she received 10 years ago.  How much did she pay in interest?
    • A. 

      $45.00

    • B. 

      $2,789.00

    • C. 

      $3,000.00

    • D. 

      $12,000

  • 9. 
    For 45 years, Richard deposits $2000 a year into an IRA.  How much will be in the account if the account earns 10% compounded annually?
    • A. 

      Multiple Payments: Future Value; Solve for FV

    • B. 

      Single Payment: Solve for A in A = P(1 + i)^n

    • C. 

      Multiple Payments: Present Value: Solve for PV

    • D. 

      Multiple Payments: Future Value; Solve for PMT

  • 10. 
    You buy a boat for $40,000 since the dealer offers you a loan that you will pay back at 6% interest compounded monthly for 4 years.  Find your monthly payment.
    • A. 

      Multiple payments with FV equation and solve for PMT with FV = 40000

    • B. 

      Single Payment with A = Pe^(rt) and P = 40000

    • C. 

      Multiple payments with PV equation and solve for PMT with PV = 40000 and

    • D. 

      Single payment with A = P(1 + i)^n and A = 40000

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