## Personal Finance Quiz

### 1. What annual rate of interest compounded annually is needed to double an investment in 5 years?

- 14.87%
- 15.53%
- 15.87%
- 16.01%

### 2. If $1,000 is invested at a rate of 7% per year compounded monthly, what is the principal after 1 month?

- $989.67
- $1005.83
- $1015.93
- $1024.66

### 3. If $1,000 is invested at a rate of 7% per year compounded monthly, what is the principal after 1 year?

Now it's time for you to put your financial knowledge to the test! Check the answers below to see how well you did.

Answer Key:

## Financial Calculations

- $722.45
- $1001.24
- $1072.29
- $1268.33

### 4. Savings Fund Investment

If a savings fund pays interest at a rate of 3% per year compounded semiannually, how much money invested now will amount to $5,000 after 1 year?

- $4,853.31
- $4,953.31
- $5,053.31
- $5,153.00

### 5. Bank Account Equality

You open two bank accounts at the same time; one has a principal of $1,000 in an account earning 5% compounded monthly and the other has a principal of $2,000 earning 4% interest compounded annually. How many years will it take for the accounts to be equal?

- 27.6 years
- 39.4 years
- 55.9 years
- 64.9 years

### 6. Annual Rate of Return

A company purchased for $650,000 in 2018 is sold in 2021 for $850,000. What is the annual rate of return for this investment?

### 7. Stock Worth Calculation

Kate wants to buy 100 shares of a stock selling for $15 per share that pays no dividends. The history of the stock market indicates that it should grow at an annual rate of 15% per year. How much should her 100 shares be worth in 5 years?

- ~$3,017
- ~$6,022
- ~$6,044
- ~$7,017

### 8. College Cost Projection

According to the College Board, the average annual cost of college at a private 4-year institution was $33,480 in the 2016-2017 school year. This was a 3.6% increase from the previous year. If the cost of college increases by 3.6% every year, what will the average cost of a 4-year private college be for the 2036-2037 school year?

- $42,367
- $47,384
- $57,186
- $67,917

### 9. Maximum Car Purchase

A car dealer is offering 3-year loans with no down payment at an interest rate of 10%. You have $500 to spend per month on your car, what's the most expensive car you can purchase?

- $9,000.74
- $10,495.62
- $14,535.42
- $15,495.62

### 10. Investment Duration

You have $100 to invest at 4% per annum compounded monthly. How long will it take you to have $150?

- 5.15 years
- 8.15 years
- 10.15 years
- 15.15 years

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