## Financial Math Self-Evaluation Test

This quick and easy quiz helps you to better understand your level of financial mathematics knowledge. The quiz is completely free, anonymous and you can do it as many times as you want.
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1. FV is the future value of money, PV is the present value of money and i the interest rate, what is the correct formula for simple interest?

2. You deposit \$1000.00 at 5% for 181 days. What is the future value you will have in the account at maturity?

3. I have a choice between two alternative investments. With equal interest rate, I decide for the investment with:

4. PV is the future value of money, PV the present value and i the interest rate and t the period, what is the correct compound interest formula?

5. Annual Percent Rate (APR) is Nominal interest rates usually quoted in terms of annual compounding. Effective Annual Rate (EAR) is the actual return earned. With intra-year compounding, what relationship exists between the two?

6. Alternative investiments can be assessed by comparing their:

7. I want to save \$5,000 for my dream holiday in 4 years. My bank account pays 2% a year compounded monthly. How much money do I need to deposit today?

8. What does NPV (Net Present values) define?

9. What is the internal rate of return (IRR) of an investment that offers the following cash flows?

 Year Cash Flow 0 -\$4.100,00 1 \$2.200,00 2 \$2.200,00 3 \$5.400,00

10. You deposit \$1,000 into a savings account that pays 5% (i) interest with monthly compounding. What will be the balance in the account 5 years (t) from now?

Question 1 of 10

Note: This test was born from an idea of the authors of the book and all the questions present and their evaluation are the result of their personal experience as trainers. As such, this test has the sole and exclusive informal and confidential value and can in no way be taken as a reference as well as having no legal value.

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