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Investment Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is 6.75% as a decimal?

a)

0.675

b)

0.0675

c)

0.00675

d)

6.75

2.

You invest $400 at %6 for one year (compounded annually). What is the total after 1 year?

a)

$24.00

b)

$424.00

c)

$402.40

d)

$487.63

3.

You invest $2000 at 4.5% SIMPLE interest for 5 years. What is the total after 5 years?

a)

$2225.00

b)

$2450.00

c)

$12,819.47

d)

$2492.36

4.

Which is better for you when you are investing money?

a)

Compound interest

b)

Simple interest

5.

You have money to invest. The bank offers you 6% at the end of the year or 0.5% every month. Which is the better option?

a)

6% at the end of the year.

b)

0.5% every month.

c)

Not enough information to determine.

6.

Which statement describes SIMPLE interest?

a)

The same amount of interest every time

b)

Interest on interest

c)

The amount of interest goes up every time

7.

The bank lists their (annual) interest rate at 4%. If interest is compounded monthly, what percentage do you get every month?

a)

0.33%

b)

4%

c)

0.04%

d)

0.03%

8.

You borrow money for 3 years at 8% interest. You are given a choice of simple interest or compound interest. Which is the better option?

a)

Compound interest

b)

Simple interest

c)

Not enough information to determine

9.

You invest $1000 at 4.6% interest, compounded annually, for 15 years. How much is your investment worth at the end of 15 years?

a)

$1963.25

b)

$2210.90

c)

$1059.07

d)

$1690.00

10.

You borrow $4000 for 5 years at 10% compounded monthly. How much do you owe after 5 years?

a)

$4,346.12

b)

$6,581.24

c)

$6,442.04

d)

$6,000.00

e)

$4,442.00