Finite Math Week 4 Quiz –Financial Topics

Finite Math

Week
4Quiz –FinancialTopics Foreachsectionreadthedirectionsanddeterminethebes
tanswer Choo
se the best answer for the ques
tions below.

Ans
wers are roun
ded
to nea
rest whole dollar amount. 1. What i
s the simple interest ear
ned
ove

r 6 yea

rs on a principal of $55
,000

at 12% interest? a. $39,600
b. $94,600
c. $61,600 d. $58,960 3. What is the value after 4 year

s if $8,700 is inves
ted in an accoun
t that pay

s 9% interest compounded

monthly?
a. $3,300
b.$12
,453
c. $9,519
d. $279
,979
5. Which of the following choices of investment yields the greatest for a depos
it
of $20
,000 over 20 years? a. 12% simple interest b. 10.5% compounded qua
rterly c. 11.5% compounded weekly d. 11% compounded daily
2. What is the effectiverateofinterest for a one

year loan

of $3,000 given at 15% interest if the interest is compounded quarterly?
a. 15.24% b. 15.27% c. 15.87% d. 15.94%
4. How much
is the discoun
t on a loan for which you

agree to pay the lende
r $6,000 in one year at 8% interest? a. $480
b. $5,520 c. $6,480 d. $960
6. You
are due
to rece
ive 3 payments (one per year) which you can
invest in an account that earns 9% interest per year. Which sequ
ence of payments yields the greatest amount?
a. $200, $300, $25
0 b. $250, $100, $300 c. $400, $100, $100 d. $300, $200, $250 7. Compute the monthly loan payment required to pay off $150
,000 dollars at 7% interest over 15 years. (
Note: a monthly payment means
the interest is compounded monthly) a. $1,348
.24 b. $427
,342
.01 c. $2,374
.12 d. $16
,084
.35 Finite Math