7. Applied and Discrete Math
Financial Math — Quiz
Test your understanding of financial math with 5 practice questions.
Practice Questions
Question 1
What is the formula for calculating the future value of an investment compounded annually?
Question 2
Which of the following represents the present value (PV) of an annuity with regular payments $R$, an interest rate $r$, and $n$ periods?
Question 3
A loan of $10{,}000$ is amortized over 5 years with monthly payments and an annual interest rate of 6%. What is the monthly payment (to the nearest dollar)?
Question 4
What is the future value of a $2{,}000$ investment after 3 years if it is compounded quarterly at an annual interest rate of 4%?
Question 5
An investment of $5{,}000$ is made in an account that offers continuous compounding at an annual interest rate of 5%. What will be the value of the investment after 10 years?