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1 | |
A deposit of $500 made five years ago is worth $705.30 today. The deposit pays interest semi-annually. What is the APR? |
| | A) | 7.15% |
| | B) | 7.00% |
| | C) | 6.85% |
| | D) | 6.70% |
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2 | |
How much would you have had to invest 21 years ago in an account paying 6% compounded annually to cover the cost of a $15,000 engagement ring for your fiance? |
| | A) | $5063 |
| | B) | $4780 |
| | C) | $4412 |
| | D) | $4114 |
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3 | |
Approximately how many years must one wait for an initial investment of $10000 to triple in value if the investment earns 9% compounded annually? |
| | A) | 19 |
| | B) | 17 |
| | C) | 15 |
| | D) | 13 |
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4 | |
During one year on a $250 deposit paying continuously compounded interest at an APR of 8%, how much interest can be accumulated? |
| | A) | $25.46 |
| | B) | $20.82 |
| | C) | $15.00 |
| | D) | $10.38 |
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5 | |
The more frequent the compounding period (other things being equal): |
| | A) | the higher the effective annual interest rate |
| | B) | the higher the APR |
| | C) | the lower the effective annual interest rate |
| | D) | the lower the APR |
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6 | |
If your trust fund promises to pay you $25,000 on your 24th birthday (6years from today) and earns 9% compounded annually, then what is the trust fund's present value? |
| | A) | $15,144.75 |
| | B) | $14,906.68 |
| | C) | $14,801.12 |
| | D) | $13,980.43 |
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7 | |
If a $10,000 investment will return $25,000 to you in five years, then to the nearest percent what annual interest rate is being offered? |
| | A) | 40% |
| | B) | 30% |
| | C) | 20% |
| | D) | 10% |
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8 | |
What is the present value of the following payment stream at an interest rate of 7%; $1000 today, $2000 at the end of year 1, $5000 at the end of year 3, $6000 at the end of year 5. |
| | A) | $11,229 |
| | B) | $10,652 |
| | C) | $10,412 |
| | D) | $10,034 |
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9 | |
What is the present value of perpetuity of $1000 per annum starting immediately offering a 12% interest rate? |
| | A) | $11, 333.33 |
| | B) | $10, 333.33 |
| | C) | $9,333.33 |
| | D) | $8,333.33 |
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10 | |
What is the APR on a 48-month loan on an $18,000 car, if you put $3000 down and the monthly payments are $373.28? |
| | A) | 15% |
| | B) | 12% |
| | C) | 9% |
| | D) | 6% |
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11 | |
In order to buy a $25,000 car making $500 monthly payments for 48 months at 8%, how much will your down payment be? |
| | A) | $5720.64 |
| | B) | $5127.24 |
| | C) | $4519.14 |
| | D) | $3827.24 |
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12 | |
$10,000 borrowed at 8% is to be repaid in four equal annual payments. How much of the principal is amortized with the first payment? |
| | A) | $2481 |
| | B) | $2316 |
| | C) | $2219 |
| | D) | $2187 |
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13 | |
On a home mortgage of $75,000 at 12% interest amortized over 30 years, what is the monthly payment? |
| | A) | $794.53 |
| | B) | $788.61 |
| | C) | $775.90 |
| | D) | $754.79 |
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14 | |
Your retirement fund's balance is $50,000 right now. You want to retire in 30 years with $1,000,000. You add $6000 annually, but what interest rate do you need to earn in order to reach your goal? |
| | A) | 9.37% |
| | B) | 8.12% |
| | C) | 7.24% |
| | D) | 6.52% |
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15 | |
Which of the following best describes inflation? |
| | A) | A spike in the price of oil |
| | B) | A rise in the price of heating gas |
| | C) | An overall rise in prices |
| | D) | An economic expansion |
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