Aptitude and Reasoning Questions

Q:

Find the finance charge for an average daily balance of $8431.10 with monthly interest rate of 1.4%

A) 98.04 B) 88.04
C) 68.04 D) 118.04
 
Answer & Explanation Answer: D) 118.04

Explanation:

0.014*8431.10

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Q:

A retirement benefit of $12,000 is to be paid every 6 months for 25 years at interest rate of 7% compounded semi-annually. Find

(a) the present value to fund the end-of-period retirement benefit.

(b) the end-of-period semi-annual payment needed to accumulate  the value in part (a) assuming regular investments for 30 years in an account yielding 8% compounded semi-annually

A) 245678 B) 234689
C) 281468.06 D) 234578
 
Answer & Explanation Answer: C) 281468.06

Explanation:

 

 

 

 

 

 

R=S[i/(1+i)^n-1]

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Q:

15 semiannual payments are made into a sinking fund at 7% compounded semiannually so that $4850 will be present. Find the amount of each payment rounded to the nearest cent

A) 251.35 B) 245.45
C) 235.87 D) 251
 
Answer & Explanation Answer: A) 251.35

Explanation:

R=S[i/(1+i)^n-1]

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Q:

Kashundra Jones plans to make a lump sum deposit so that she can withdraw $3,000 at the end of each quarter for 10 years. Find the lump sum if the money earns 10% per year compounded quarterly

A) 75263.64 B) 76345
C) 76389 D) 56897
 
Answer & Explanation Answer: A) 75263.64

Explanation:

 

 

A=R[(1+i)^n-1]/i(1+i)^n

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Q:

What lump sum deposited today would allow payments of $2000/year for 7 years at 5% compounded annually?

A) 11572.71 B) 11876
C) 189756 D) 11576
 
Answer & Explanation Answer: A) 11572.71

Explanation:

 

 

A=R[(1+i)^n-1]/i(1+i)^n

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Q:

Sharon Stone deposits $500 at the beginning of each 3 months in an account earning 10% compounded quarterly. Determine how much money she has after 25 years

A) 22681.19 B) 23456
C) 44577 D) 25685
 
Answer & Explanation Answer: A) 22681.19

Explanation:

 

 

S=R[(1+i)^n-1)/i]

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Q:

For S = $21,000, payments (R) of $1500 at the end of each 6-month periodi= 10% compounded semi-annually. Find the minimum number of payments to accumulate 21,000.

A) 10 B) 11
C) 12 D) 13
 
Answer & Explanation Answer: B) 11

Explanation:

S=R[(1+i)^n-1)/i]

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Q:

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

A) 2 B) 3
C) 4 D) 5
 
Answer & Explanation Answer: A) 2

Explanation:

Amount = Rs. (30000 + 4347) = Rs. 34347

(1+7/100)^n=34347

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