Capital One Assessment Test Capital One Numerical 4 — Questions and Answers
Question 1: A risk table shows: low-risk loans yield 4% return and represent 60% of the portfolio; high-risk loans yield 9% and represent 40%. What is the weighted average return?
- 6.0% (Correct answer)
- 5.8%
- 6.5%
- 7.0%
Correct answer: 6.0%
Weighted return = (0.60 × 4%) + (0.40 × 9%) = 2.4% + 3.6% = 6.0%.
Question 2: If 3 analysts can review 180 applications in 5 days, how many applications can 5 analysts review in 4 days?
- 240 (Correct answer)
- $210
- 300
- 180
Correct answer: 240
Rate per analyst per day = 180 / (3 × 5) = 12; 5 analysts × 4 days × 12 = 240.
Question 3: A customer owes $6,500 on a card at 24% APR, compounded monthly. What is the monthly periodic rate?
- 2.0% (Correct answer)
- 1.5%
- 2.5%
- 3.0%
Correct answer: 2.0%
Monthly rate = 24% ÷ 12 = 2.0% per month.
Question 4: Revenue data: Product A=$340,000 (45%), Product B=$?. If the combined revenue for A and B is $755,556, what is Product B's revenue?
- $415,556 (Correct answer)
- $400,000
- $395,556
- $420,000
Correct answer: $415,556
Total = $340,000 / 0.45 = $755,556; Product B = $755,556 − $340,000 = $415,556.
Question 5: A bank account earns 4.8% annual interest compounded monthly. What is the monthly interest rate?
- 0.4% (Correct answer)
- 0.48%
- 0.5%
- 0.8%
Correct answer: 0.4%
Monthly rate = 4.8% ÷ 12 = 0.4% per month.
Question 6: A graph shows capital expenditures over 4 years: $2.1M, $2.8M, $3.5M, $4.2M. If the trend continues, what will capex be in Year 5?
- $4.9M (Correct answer)
- $5.0M
- $4.6M
- $5.2M
Correct answer: $4.9M
Capex increases by $0.7M each year; Year 5 = $4.2M + $0.7M = $4.9M.
Question 7: A department has 48 employees. After a 25% headcount reduction, how many employees remain?
- 36 (Correct answer)
- 38
- 34
- 40
Correct answer: 36
Reduction = 48 × 0.25 = 12; remaining = 48 − 12 = 36 employees.
Capital One Assessment Test Capital One Numerical 4
A risk table shows: low-risk loans yield 4% return and represent 60% of the portfolio; high-risk loans yield 9% and represent 40%.
What is the weighted average return?