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GE 001 FINAL EXAMINATION

Total questions: 11

Worksheet time: 41mins

Name
Class
Date
1.

A principal of $2000 is placed in a savings account at 3% per annum compounded annually. How much is in the account after one year?

a)

$2060

b)

$2050

c)

$2080

d)

$2000

2.

A principal of $2000 is placed in a savings account at 3% per annum compounded annually. How much is in the account after two (2) years?

a)

$2060

b)

$2121.80

c)

$2080

d)

$2185.45

3.

A principal of $2000 is placed in a savings account at 3% per annum compounded annually. How much is in the account after three (3) years?

a)

$2060

b)

$2121.80

c)

$2080

d)

$2185.45

4.

What would $1000 become in a saving account at 3% per year for 3 years when the interest is not compounded (simple interest)?

a)

$1090

b)

$1092.73

c)

$1095

d)

$1022.73

5.

What would $1000 become in a saving account at 3% per year for 3 years when the interest is compounded anually?

a)

$1090

b)

$1092.73

c)

$1095

d)

$1022.73

6.

If $3000 is placed in an account at 5% and is compounded quarterly for 5 years. How much is in the account at the end of 5 years?

a)

$3846.11

b)

$3800

c)

$3000

d)

$846.11

7.

$1200 is placed in an account at 4% compounded annually for 2 years. It is then withdrawn at the end of the two years and placed in another bank at the rate of 5% compounded annually for 4 years. What is the balance in the second account after the 4 years.

a)

$1297.92

b)

$1577.63

c)

$1477.63

d)

$1500

8.

What interest rate, compounded annually, is needed for a principal of $4,000 to increase to $4,500 in 10 year?

a)

12%

b)

15%

c)

20%

d)

10%

9.

How many quarters in a year?

a)

4

b)

3

c)

2

d)

1

10.

How many months in a quarter?

a)

12

b)

4

c)

3

d)

2

11.

Semi-annual means ?

a)

Every 6 months

b)

Every 2 months

c)

Every 2 months

d)

Every 1 month