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Home Aptitude Compound Interest Comments

  • Question
  • Other things being equal, would an investor prefer an interest rate of 10.5% compounded monthly or 11% compounded annually for a two-year investment?


  • Options
  • A. 1232
  • B. 1243
  • C. 1254
  • D. 1262

  • Correct Answer
  • 1232 

    Explanation

    i=j/m

     

    FV=  PV(1+  i)^n 


  • Compound Interest problems


    Search Results


    • 1. Determine the nominal rate of interest if: The periodic rate is 0.83% per month

    • Options
    • A. 7%
    • B. 8%
    • C. 9%
    • D. 10%
    • Discuss
    • 2. Calculate the periodic interest rate corresponding to 9.5% compounded monthly

    • Options
    • A. 0.7916
    • B. 0.8916
    • C. 0.9916
    • D. 0.6916
    • Discuss
    • 3. Calculate the periodic interest rate corresponding to:9.0% compounded quarterly

    • Options
    • A. 3.45
    • B. 2.25
    • C. 5.25
    • D. 6.25
    • Discuss
    • 4. A loan is made for $4800 with an APR of 12% and payments made monthly for 24 months. What is the payment amount? What is the finance charge?

    • Options
    • A. 622.80
    • B. 522.80
    • C. 322.80
    • D. 632.80
    • Discuss
    • 5. A loan is made for $3500 with an interest rate of 9% and payments made annually for 4 years. What is the payment amount?

    • Options
    • A. 8906
    • B. 1089
    • C. 1070
    • D. 1080.34
    • Discuss
    • 6. If an investment can earn 4% compounded monthly, what amount must you invest now in order to accumulate $10,000 after 3 years?

    • Options
    • A. 8695.61
    • B. 6786
    • C. 3478
    • D. 4092
    • Discuss
    • 7. Kramer borrowed $4000 from George at an interest rate of 7% compounded semiannually. The loan is to be repaid by three payments. The first payment, $1000, is due two years after the date of the loan. The second and third payments are due three and five years, respectively, after the initial loan. Calculate the amounts of the second and third payments if the second payment is to be twice the size of the third payment.

    • Options
    • A. 1389
    • B. 1359
    • C. 1379
    • D. 1339.33
    • Discuss
    • 8. What amount must you invest now at 4% compounded monthly to accumulate $10,000 after 3 year

    • Options
    • A. 8695
    • B. 7695
    • C. 3695
    • D. 4695
    • Discuss
    • 9. What periodic payment will an investor receive from a $9000, four-year, monthly payment GIC earning a nominal rate of 5.25% compounded monthly?

    • Options
    • A. 29.38
    • B. 39.38
    • C. 49.38
    • D. 59.38
    • Discuss
    • 10. At what rate of compound interest per annum will a sum of Rs 10000 become Rs 12321 in 2 years?

    • Options
    • A. 22 percent
    • B. 11 percent
    • C. 7 percent
    • D. 15 percent
    • Discuss


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