Decimal Fraction
Q. A principal of $2500 is invested at a compound interest rate of 3% per annum. What will be the amount after 6 years?
-
A.
$2925.00
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B.
$3000.00
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C.
$2800.00
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D.
$2700.00
Solution
Total Amount = 2500(1 + 0.03)^6 = 2500(1.191016) = 2977.54
Correct Answer: A — $2925.00
Q. A sum of $3000 is invested at a compound interest rate of 7% per annum. What will be the amount after 5 years?
-
A.
$4210.00
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B.
$4000.00
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C.
$4500.00
-
D.
$4100.00
Solution
Total Amount = 3000(1 + 0.07)^5 = 3000(1.402552) = 4207.66
Correct Answer: A — $4210.00
Q. A sum of money doubles itself in 10 years at compound interest. What is the rate of interest?
-
A.
7.2%
-
B.
10%
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C.
5%
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D.
12%
Solution
Using the Rule of 72, Rate = 72/10 = 7.2%
Correct Answer: A — 7.2%
Q. Convert 0.125 to a fraction.
-
A.
1/8
-
B.
1/4
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C.
1/2
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D.
3/8
Solution
0.125 = 125/1000 = 1/8 after simplification.
Correct Answer: A — 1/8
Q. Convert 0.2 to a fraction.
-
A.
1/5
-
B.
1/4
-
C.
1/2
-
D.
2/5
Solution
0.2 = 2/10 = 1/5 after simplification.
Correct Answer: A — 1/5
Q. If $1200 is invested at a compound interest rate of 10% per annum, what will be the total amount after 3 years?
-
A.
$1593.00
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B.
$1500.00
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C.
$1600.00
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D.
$1700.00
Solution
Total Amount = 1200(1 + 0.10)^3 = 1200(1.331) = 1597.20
Correct Answer: A — $1593.00
Q. If $1500 is invested at an interest rate of 4% compounded annually, what will be the total amount after 5 years?
-
A.
$1800.00
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B.
$1820.00
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C.
$1833.00
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D.
$1850.00
Solution
Total Amount = P(1 + r/n)^(nt) = 1500(1 + 0.04/1)^(1*5) = 1500(1.2166529) = 1824.98
Correct Answer: C — $1833.00
Q. If 0.4 is expressed as a fraction, what is it?
-
A.
2/5
-
B.
1/4
-
C.
3/5
-
D.
1/2
Solution
0.4 = 4/10 = 2/5 after simplification.
Correct Answer: A — 2/5
Q. If you invest $1000 at an interest rate of 8% compounded annually, how much will you have after 2 years?
-
A.
$1166.40
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B.
$1080.00
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C.
$1200.00
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D.
$1150.00
Solution
Total Amount = 1000(1 + 0.08)^2 = 1000(1.1664) = 1166.40
Correct Answer: A — $1166.40
Q. What is 0.75 as a fraction?
-
A.
1/2
-
B.
3/4
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C.
2/3
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D.
1/4
Solution
0.75 = 75/100 = 3/4 after simplification.
Correct Answer: B — 3/4
Q. What is 0.9 as a fraction?
-
A.
9/10
-
B.
1/10
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C.
1/5
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D.
1/2
Solution
0.9 = 9/10.
Correct Answer: A — 9/10
Q. What is the compound interest on $5000 at a rate of 6% per annum for 4 years?
-
A.
$1272.48
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B.
$1265.00
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C.
$1300.00
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D.
$1200.00
Solution
Compound Interest = 5000(1 + 0.06)^4 - 5000 = 5000(1.26247696) - 5000 = 1312.38
Correct Answer: A — $1272.48
Q. What is the compound interest on $8000 at a rate of 5% per annum for 2 years?
-
A.
$800.00
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B.
$850.00
-
C.
$820.00
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D.
$900.00
Solution
Compound Interest = 8000(1 + 0.05)^2 - 8000 = 8000(1.1025) - 8000 = 820.00
Correct Answer: C — $820.00
Q. What is the decimal equivalent of 5/8?
-
A.
0.55
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B.
0.6
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C.
0.625
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D.
0.7
Solution
5 divided by 8 equals 0.625.
Correct Answer: C — 0.625
Q. What will be the compound interest on $4000 at an annual interest rate of 9% for 2 years?
-
A.
$720.00
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B.
$800.00
-
C.
$900.00
-
D.
$850.00
Solution
Compound Interest = 4000(1 + 0.09)^2 - 4000 = 4000(1.1881) - 4000 = 752.40
Correct Answer: B — $800.00
Q. What will be the compound interest on an amount of $2000 at an annual interest rate of 5% for 3 years?
-
A.
$315.25
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B.
$300.00
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C.
$250.00
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D.
$200.00
Solution
Compound Interest = P(1 + r/n)^(nt) - P = 2000(1 + 0.05/1)^(1*3) - 2000 = 2000(1.157625) - 2000 = 315.25
Correct Answer: A — $315.25
Q. Which decimal represents 7/10?
-
A.
0.5
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B.
0.7
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C.
0.8
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D.
0.9
Solution
7/10 equals 0.7.
Correct Answer: B — 0.7
Q. Which of the following fractions is equivalent to 0.3?
-
A.
1/3
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B.
2/5
-
C.
3/10
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D.
1/4
Solution
0.3 = 3/10.
Correct Answer: C — 3/10
Q. Which of the following is equal to 0.03?
-
A.
3/100
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B.
1/30
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C.
1/3
-
D.
3/10
Solution
0.03 = 3/100.
Correct Answer: A — 3/100
Q. Which of the following is equal to 0.33?
-
A.
1/3
-
B.
1/4
-
C.
1/2
-
D.
2/3
Solution
0.33 is approximately equal to 1/3.
Correct Answer: A — 1/3
Q. Which of the following is equal to 0.6?
-
A.
3/5
-
B.
2/3
-
C.
1/2
-
D.
4/5
Solution
0.6 = 6/10 = 3/5 after simplification.
Correct Answer: A — 3/5
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