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    MCQs-Mathematics of Finance

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    20 MC Questions on mathematics of Finance. Example:

    1.
    Find the present value of the future amount. Assume 365 days in a year. Round to the nearest cent.
    $18,350 for 119 days; money earns 3.3%
    A) $195.32
    B) $18,156.30
    C) $17,763.79
    D) $18,154.68

    2.
    Find the sum of the first five terms of the geometric sequence.
    a = 3, r = -4
    A) 1023
    B) 615
    C) -1023
    D) -615

    3.
    Find the sum of the first five terms of the geometric sequence.
    a = 12, r = 4
    A) 252
    B) 7710
    C) 268
    D) 4092

    4.
    Find the actual interest rate paid, to the nearest tenth, on the simple discount note.
    $49,000; discount rate 5%; length of loan 6 mo
    A) 6.1%
    B) 5.1%
    C) 4.1%
    D) 7.1%

    5.
    Find the compound interest earned by the deposit. Round to the nearest cent.
    $830 at 7% compounded annually for 20 years
    A) $1103.90
    B) $2171.72
    C) $1162.00
    D) $2381.84

    6.
    Find the compound amount for the deposit. Round to the nearest cent.
    $1900 at 10% compounded quarterly for 4 years
    A) $2097.24
    B) $2781.79
    C) $2660.00
    D) $2820.56

    7.
    Solve the problem.
    Tuition of $2600 is due when the spring term begins, in What amount should a student deposit today, at to have enough to pay tuition?
    A) $2452.83
    B) $111.96
    C) $2500.00
    D) $2488.04

    8.
    Find the monthly house payment necessary to amortize the following loan.
    In order to purchase a home, a family borrows at 8.8% for What is their monthly payment? Round the answer to the nearest cent.
    A) $4023.64
    B) $792.00
    C) $853.50
    D) $1244.22

    9.
    Find the present value of the ordinary annuity.
    Payments of $3900 made annually for at 9% compounded annually
    A) $38,269.14
    B) $38,723.10
    C) $37,853.40
    D) $38,308.05

    10.
    Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent, if necessary.
    A loan of $97,000 at 13% made on Feb 18 and due on June 30
    A) $4728.75
    B) $4560.33
    C) $4663.97
    D) $4623.67

    11.
    Find the periodic payment that will render the sum.
    S = $55,000, interest is 4% compounded annually, payments made at the end of each year for
    A) $5170.81
    B) $4471.66
    C) $10,154.50
    D) $3304.20

    12.
    Find the periodic payment that will render the sum.
    S = $23,000, interest is 18% compounded monthly, payments made at the end of each month for
    A) $486.51
    B) $6438.25
    C) $612.70
    D) $509.80

    13.
    Find the compound interest earned by the deposit. Round to the nearest cent.
    $20,625 at 12% compounded continuously for 5 years
    A) $37,581.20
    B) $37,577.49
    C) $13,377.58
    D) $14,353.97

    14.
    Find the compound amount for the deposit. Round to the nearest cent.
    $5000 at 7% compounded semiannually for 8 years
    A) $7800.00
    B) $6584.05
    C) $8669.93
    D) $8590.93

    15.
    Find the sum of the first five terms of the geometric sequence.
    a = , r = 2
    A)
    B)
    C)
    D)

    16.
    Find the present value of the future amount. Assume 365 days in a year. Round to the nearest cent.
    $18,000 for 9 months; money earns 8.5%
    A) $16,589.86
    B) $16,921.27
    C) $17,034.70
    D) $17,915.00

    17.
    Find the sum of the first five terms of the geometric sequence. (Please see the attachment)
    a = , r = 2
    A)
    B)
    C)
    D)

    18.
    Find the interest. Round to the nearest cent.
    $1390 at 7.5% for 2 months
    A) Interest = $52.12
    B) Interest = $1737.50
    C) Interest = $208.50
    D) Interest = $17.38

    19.
    Find the interest. Round to the nearest cent.
    $2180 at 15% for 22 months
    A) Interest = $59,950.00
    B) Interest = $599.50
    C) Interest = $14.86
    D) Interest = $7194.00

    20.
    Find the amount that should be invested now to accumulate the following amount, if the money is compounded as indicated.
    $3000 at 8% compounded semiannually for 8 yr
    A) $5618.94
    B) $1620.81
    C) $1601.72
    D) $1398.28

    © BrainMass Inc. brainmass.com October 10, 2019, 12:18 am ad1c9bdddf
    https://brainmass.com/math/discrete-math/mcqs-mathematics-of-finance-286424

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    Solution Summary

    The solution provides answers to multiple choice questions on present value, future value, compound interest, geometric sequence, simple interest, periodic payment and amortization of loan.

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