Question 1

If you deposit $4000 into an account paying 6% annual interest compounded quarterly, how  much money will be in the account after 5 years?

Accepted Answer

5387.42 - =4000(1+0.06/4)4(5)  = 4000(1.015) =4000(1.346855007) =5387.42

Question 2

Wayne earns 5.3% simple interest for 5 years on $3000. What is the total amount in the account?

Accepted Answer

3795 - 3000(5.3%)5 = 3000(0.053)5 = 795 Wayne would earn $795 interest. $3000 + $795 = $3795 in the account

Question 3

Tong loaned Jody $50 for a month. He charged 5% simple interest for the month. How much did Jody have to pay Tong?

Accepted Answer

52.50 - I = 50(0.05)1 = $2.50; Jody paid back $52.50.

Question 4

$2000 for college is put in a savings account for college in four years. An additional 7.5% simple interest is put on the $2000 for every year. How much extra money will the account make?

Accepted Answer

600 - I = 2000(0.075)4 = $600

Question 5

A car worth 20 000 dollars depreciates by 10% per year for 2 years.

Accepted Answer

16 200 - 20 000×0.9x2  =16 200

Question 6

Maddy borrows $10000 at 4% interest for a period of two years. How much money will she have at the end of 2 years?

Accepted Answer

400 - = 10000 × 4%       = 10000 × 0.04     = $400.

Question 7

Dave borrows $1500 to repair his house. He will pay off the loan after 3 years by paying back the principal plus 3.5% interest for each year.how much will she pay in total?

Accepted Answer

52.5 - I = 3.5% × 1500  I = 0.035 × 1500  I = $52.5

Question 8

An item of jewellery is purchased for $1025 and it has an average depreciation in value by 5% each year. How much would it be worth two years after purchase?

Accepted Answer

925.06 - =$1025(1-0.05)^2  = 925.06

Question 9

A house was valued 6 years ago to be worth $548000. Its value appreciated at 5.2%. How much did the home increase in value?

Accepted Answer

742805 - 548000(1+0.052)^6 =742805 dollars

Question 10

A salesperson earns a 13% commission on their sales each week. In one week, their sales amounted to 640.How much do they make?

Accepted Answer

67 - 10% x 640      10/100 x 640       64 dollars

Interest in Finance Quiz (Simple, Compound, Appreciation & Deprecation)

2) Wayne earns 5.3% simple interest for 5 years on $3000. What is the total amount in the account?

3) Tong loaned Jody $50 for a month. He charged 5% simple interest for the month. How much did Jody have to pay Tong?

4) $2000 for college is put in a savings account for college in four years. An additional 7.5% simple interest is put on the $2000 for every year. How much extra money will the account make?

5) A car worth 20 000 dollars depreciates by 10% per year for 2 years.

6) Maddy borrows $10000 at 4% interest for a period of two years. How much money will she have at the end of 2 years?

7) Dave borrows $1500 to repair his house. He will pay off the loan after 3 years by paying back the principal plus 3.5% interest for each year.how much will she pay in total?

8) An item of jewellery is purchased for $1025 and it has an average depreciation in value by 5% each year. How much would it be worth two years after purchase?

9) A house was valued 6 years ago to be worth $548000. Its value appreciated at 5.2%. How much did the home increase in value?

10) A salesperson earns a 13% commission on their sales each week. In one week, their sales amounted to 640.How much do they make?