Financial Math Quiz

Approved & Edited by ProProfs Editorial Team

The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.

Learn about Our Editorial Process

| By Sipho

Sipho

Community Contributor

Quizzes Created: 1 | Total Attempts: 2,658

Questions: 10 | Attempts: 2,682 | Updated: Oct 21, 2024

Questions

Settings

Feedback

During the Quiz End of Quiz

Difficulty

Sequential Easy First Hard First

Play as

Quiz Flashcard

Create your own Quiz

Share on Facebook Share on Twitter Share on Whatsapp Share on Pinterest Share on Email Copy to Clipboard Embed on your website

To succeed in life, you have to be good at maths as well as finance. Mathematical finance (a mix of both), also known as quantitative finance, is a field of applied maths, concerned with the mathematical modeling of financial markets. It is one of the rarest yet important skills to have. Take this test to test your knowledge about Financial Math and try to get better at it.

Questions and Answers

1.

A sum fetched a total simple interest of R4016.25 at a rate of 9% p.a in 5 years.what is the sum?
- A.
  
  R8925
- B.
  
  R9500
Correct Answer
A. R8925

Explanation
The sum can be calculated using the formula for simple interest: I = P * R * T, where I is the interest, P is the principal sum, R is the rate, and T is the time. In this case, we are given that the interest is R4016.25, the rate is 9% per annum, and the time is 5 years. Plugging these values into the formula, we can solve for the principal sum. The correct answer is R8925.

Rate this question:

1
0
2.

A sum of money at simple interest amounts to R815 in 3 years and R854 in 4 years.the sum is:
- A.
  
  R690
- B.
  
  R698
Correct Answer
B. R698

Explanation
To find the sum of money, we need to calculate the difference between the amounts after 4 years and 3 years. The difference is R854 - R815 = R39. This difference represents the interest earned in the 4th year. Since the interest is earned annually, we can divide R39 by 1 to get the interest earned in one year, which is R39. Now, we subtract this interest from the amount after 3 years to find the initial sum of money: R815 - R39 = R776. Therefore, the sum of money is R776, which is not one of the given options. Thus, the question is incomplete or not readable.

Rate this question:

4
0
3.

Mr Zwane invested an amount of R13.900 divided in two different schemes A and B at the simple interest rate of 14% p.a and 11% p.a respectively. If the total amount of simple interest earned in 2 years be R3508,what was the amount invested in scheme B ?
- A.
  
  R6400
- B.
  
  R8000
Correct Answer
A. R6400

Explanation
Let the amount invested in scheme A be x, then the amount invested in scheme B would be (13900 - x).

Using the formula for simple interest, we can calculate the interest earned from scheme A as (x * 14% * 2) and the interest earned from scheme B as ((13900 - x) * 11% * 2).

Given that the total interest earned is R3508, we can set up the equation:

(x * 14% * 2) + ((13900 - x) * 11% * 2) = 3508

Simplifying this equation, we find that x = 6400.

Therefore, the amount invested in scheme B is R6400.

Rate this question:

1
0
4.

How much time will it take for an amount of Rs. 900 to yield Rs. 81 as interest at 4.5% per annum of simple interest?
- A.
  
  4 years
- B.
  
  2 years
Correct Answer
B. 2 years

Explanation
At a 4.5% interest rate per annum, the interest earned is calculated as a percentage of the principal amount. To find the time it takes for an amount of Rs. 900 to yield Rs. 81 in interest, we can use the formula: Time = (Interest / (Principal * Rate)). Plugging in the given values, we get Time = (81 / (900 * 0.045)) = 2 years. Therefore, it will take 2 years for an amount of Rs. 900 to yield Rs. 81 as interest at a 4.5% per annum simple interest rate.

Rate this question:

1
0
5.

Mr. Thomas invested an amount of Rs. 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be Rs. 3508, what was the amount invested in Scheme B?
- A.
  
  R7200
- B.
  
  R6400
Correct Answer
A. R7200

Explanation
Let the amount invested in scheme A be x and the amount invested in scheme B be (13900 - x). The simple interest earned from scheme A in 2 years is (x * 14 * 2) / 100 = 28x/100. The simple interest earned from scheme B in 2 years is ((13900 - x) * 11 * 2) / 100 = (27800 - 22x)/100. Given that the total simple interest earned is 3508, we can set up the equation: 28x/100 + (27800 - 22x)/100 = 3508. Simplifying the equation, we get: 6x/100 = 3508 - 27800/100. Solving for x, we find x = 7200. Therefore, the amount invested in scheme B is 13900 - 7200 = 6700. Hence, the correct answer is R7200.

Rate this question:

4
0
6.

Arun took a loan of Rs. 1400 with simple interest for as many years as the rate of interest. If he paid Rs.686 as interest at the end of the loan period, what was the rate of interest?
- A.
  
  7%
- B.
  
  4%
Correct Answer
A. 7%

Explanation
Arun took a loan of Rs. 1400 with simple interest for as many years as the rate of interest. This means that the rate of interest is equal to the number of years. Arun paid Rs. 686 as interest at the end of the loan period. To find the rate of interest, we can use the formula: Interest = Principal * Rate * Time. Plugging in the values, we have 686 = 1400 * Rate * Rate. Solving for Rate, we get Rate = 7%.

Rate this question:

1
0
7.

Which of these is NOT a deduction from your pay each month?
- A.
  
  Direct Debit
- B.
  
  Tax
- C.
  
  National Insurance
Correct Answer
A. Direct Debit

Explanation
Direct Debit is a payment method that allows companies to take money directly from a person's bank account to pay for goods or services. It is not a deduction from your pay each month, as it is a separate transaction that you authorize. Tax and National Insurance, on the other hand, are deductions that are typically taken from an individual's salary or wages each month.

Rate this question:
8.

Sean earns £6.83 per hour parking cars at an airport. If he works for 38 hours per week, how much is his weekly gross pay?
- A.
  
  £190.25
- B.
  
  £315.12
- C.
  
  £255.45
Correct Answer
C. £255.45

Explanation
Sean earns £6.83 per hour and works for 38 hours per week. To calculate his weekly gross pay, we can multiply his hourly rate by the number of hours he works. £6.83 x 38 = £259.34. Therefore, the correct answer is £255.45.

Rate this question:

2
0
9.

Charlie earns £1,980 per month as a consumer reviewer. She pays income tax at a rate of 20%. How much tax does Charlie pay per month?
- A.
  
  £1584
- B.
  
  £396
- C.
  
  £1122
Correct Answer
B. £396

Explanation
Charlie earns £1,980 per month and pays income tax at a rate of 20%. To calculate how much tax Charlie pays per month, we multiply her monthly income by the tax rate. 20% of £1,980 is £396. Therefore, Charlie pays £396 in tax per month.

Rate this question:

2
1
10.

Work out the total amount in your bank if £250 is invested and earns simple interest of 2% for 2 years.
- A.
  
  £260
- B.
  
  £300
- C.
  
  £290
Correct Answer
A. £260

Explanation
If £250 is invested at a simple interest rate of 2% for 2 years, the interest earned would be £5 (250 * 0.02 * 2). Adding this interest to the initial investment, the total amount in the bank would be £255. Therefore, the correct answer is £260.

Rate this question:

1
0

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

Current Version
Oct 21, 2024

Quiz Edited by
ProProfs Editorial Team
Sep 18, 2017

Quiz Created by
Sipho

Financial Math Quiz

A sum fetched a total simple interest of R4016.25 at a rate of 9% p.a in 5 years.what is the sum?

A sum of money at simple interest amounts to R815 in 3 years and R854 in 4 years.the sum is:

Mr Zwane invested an amount of R13.900 divided in two different schemes A and B at the simple interest rate of 14% p.a and 11% p.a respectively. If the total amount of simple interest earned in 2 years be R3508,what was the amount invested in scheme B ?

How much time will it take for an amount of Rs. 900 to yield Rs. 81 as interest at 4.5% per annum of simple interest?

Mr. Thomas invested an amount of Rs. 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be Rs. 3508, what was the amount invested in Scheme B?

Arun took a loan of Rs. 1400 with simple interest for as many years as the rate of interest. If he paid Rs.686 as interest at the end of the loan period, what was the rate of interest?

Which of these is NOT a deduction from your pay each month?

Sean earns £6.83 per hour parking cars at an airport. If he works for 38 hours per week, how much is his weekly gross pay?

Charlie earns £1,980 per month as a consumer reviewer. She pays income tax at a rate of 20%. How much tax does Charlie pay per month?

Work out the total amount in your bank if £250 is invested and earns simple interest of 2% for 2 years.