The Importance of Financial Education for Students and Adults

Personal Finance Quiz

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

1. 14.87%
2. 15.53%
3. 15.87%
4. 16.01%

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

1. $989.67
2. $1005.83
3. $1015.93
4. $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

1. $722.45
2. $1001.24
3. $1072.29
4. $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?

1. $4,853.31
2. $4,953.31
3. $5,053.31
4. $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?

1. 27.6 years
2. 39.4 years
3. 55.9 years
4. 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?

1. ~$3,017
2. ~$6,022
3. ~$6,044
4. ~$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?

1. $42,367
2. $47,384
3. $57,186
4. $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?

1. $9,000.74
2. $10,495.62
3. $14,535.42
4. $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?

1. 5.15 years
2. 8.15 years
3. 10.15 years
4. 15.15 years