Question 1
Kim invested $2,000 for 3 years at 8% annual interest rate that was compounded annually. How much loss would have Kim suffered if he had invested that money for 3 years at 8% simple annual interest?
Give your answer to the nearest integer.
Question 2
Josh invested $X in a special savings account that paid simple interest. The amount grew to $4,000 after 2 years. Josh then waited for another 3 years and got a final amount of $7,000. At what annual interest rate did Josh invest $X initially?
A) 10%
B) 20%
C) 25%
D) 35%
E) 50%
Question 3
What is the least number of full years that it would take $X invested at 20% annual interest rate, compounded annually, to more than double itself?
Question 4
Karen invested $42,000 for one quarter in a bank account that paid simple annual interest rate of x percent. If Karen earned $420 for the quarter, what is the value of x?
A) 3
B) 5
C) 4
D) 4.5
E) 5
Question 5
The annual rate of interest earned by an investment of $P increased by 20% from 2019 to 2020. If the annual rate of interest earned in 2020 was 36%, what was the annual rate of interest for 2019?
A) 10%
B) 16%
C) 20%
D) 30%
E) 44%
Question 6
If $1,000 is invested at 15 percent annual interest, compounded semiannually, what is the approximate balance after 1 year
A) $1,350
B) $1,320
C) $1,300
D) $1,200
E) $1,150
Question 7
Mark made a deposit of $8,000 at 6% simple annual rate of interest. He also deposited another $10,000 at 8% annual rate of interest that was compounded half yearly. What was the total amount of interest that Mark earned from these two deposits after 1 year?
A) $1,200
B) $1,280
C) $1,296
D) $2,080
E) $2,144
Question 8
$1,000 is deposited in a bank account at a simple interest rate of 12% per annum.
Quantity A: Value of the deposit after 5 months
Quantity B: $1,060
A) Quantity A is greater.
B) Quantity B is greater.
C) The two quantities are equal.
D) The relationship cannot be determined from the information given.
Question 9
An investment of $X is made in a bond at an annual interest rate of 4%, compounded semiannually. Find the minimum value of X such that the investment is at least $2,000 at the end of 2 years?
A) $1,840
B) $1,845
C) $1,847
D) $1,848
E) $1,850
Question 10
On a certain date, Pat invested $X in Panda account at a simple annual interest rate of 2.5 percent. On the same date, he invested another $Y in Zebra account at a simple annual interest rate of 1.5 percent. The sum of the amounts that he invested in the two accounts was $6,400. If each investment earned him the same interest after two years, what was his average rate of interest from the two investments?
A) 3.5%
B) 3.75%
C) 4%
D) 4.25%
E) 4.5%
Question 11
An investor aims at earning an interest of at least $1,000 on a principal amount of $10,000. If the money is invested for one year at annual interest rate that is compounded every 6 months, then what is the minimum annual interest rate that is needed to make at least $1,000?
A) 9.2%
B) 9.4%
C) 9.6%
D) 9.8%
E) 10%
Question 12
On a certain date, Pat invested $X in Panda account at a simple annual interest rate of 10 percent. On the same date, he invested another $Y in Zebra account at a simple annual interest rate of 8 percent. The sum of the amounts that he invested in the two accounts was $3,000. If the interest earned at the end of the year from these investments was $256, how much did Pat invest at 10 percent?
Question 13
Alex invested $10,000 that earned 4% interest per annum, compounded quarterly. How much money did Alex earn 6 months after the investment?
A) $400
B) $201
C) $200
D) $101
E) $100
Question 14
Josh earned 4% interest per year, compounded annually, for 10 years on an initial investment of $X. By the end of the first two years, his investment had grown to $4,160.
Quantity A: Interest earned by Josh in the third year
Quantity B: $166
A) Quantity A is greater.
B) Quantity B is greater.
C) The two quantities are equal.
D) The relationship cannot be determined from the information given.
Question 15
Josh earned 4% interest per year, compounded annually, for 10 years on an initial investment of $X. By the end of the first two years, his investment had grown to $4,160. The interest earned by Josh in the third year was how much greater than the interest that he earned in the second year?
A) $5.2
B) $5.7
C) $6.3
D) $6.4
E) $7.1
Question 16
Max invested $A into a brokerage account that earned 16% interest per annum, compounded semiannually. 6 months later Max invested another $A into the same brokerage account. If the account contained $B after 1 year, which of the following expresses A in terms of B?
A) B/2.426112
B) B/2.2464
C) B/2.40
D) B/2.24
E) B/2.04
Question 17
Brock deposited $5,000 at 6 percent simple annual interest and $10,000 at y percent simple annual interest. The total amount of interest earned by the two deposits in one year was $900.
Quantity A: y
Quantity B: 6
A) Quantity A is greater.
B) Quantity B is greater.
C) The two quantities are equal.
D) The relationship cannot be determined from the information given.
Question 18
If Sam invests $10,000 for one year at x percent simple annual interest, he will earn $1,000. How much should Sam invest at y% simple annual interest for one year to earn $1,500 where y=0.6x?
Question 19
If Josh invests in Type A bond at x% annual interest, compounded semiannually, then his investment will triple in 40/x years. What will be Josh’s investment worth after 24 years if he invested $1,000 in Type A bond at 5% annual interest, compounded semiannually?
Question 20
Amber had $100,000 in savings. She used $X from her savings to purchase a car. From her remaining savings, she spent 1/3 to buy a certificate of deposit at 4% simple annual rate of interest and 2/3 of it to buy another certificate of deposit at 6% simple annual rate of interest. If she earned a total of $320 from her two certificates after one year, for how much did she purchase the car?
A) $96,000
B) $94,000
C) $88,000
D) $75,000
E) $40,000