Capital One Assessment Test Capital One Practice Aptitude 5 — Questions and Answers
Question 1: A graph shows revenue growth of 8% per year. If revenue is currently $50 million, what will it be after 2 years (rounded to nearest million)?
- $58 million (Correct answer)
- $58.3 million
- $57 million
- $59 million
Correct answer: $58 million
Year 1: $50M × 1.08 = $54M; Year 2: $54M × 1.08 ≈ $58.32M, rounds to $58 million.
Question 2: If the probability of a loan defaulting is 3%, and Capital One issues 2,000 loans, how many defaults are expected?
- 60 (Correct answer)
- 45
- 75
- 30
Correct answer: 60
Expected defaults = 2,000 × 0.03 = 60.
Question 3: Read the argument: 'Our app has 4.8 stars from 500 reviews, therefore it is better than all competitor apps.' What is the flaw in this argument?
- It ignores competitors' ratings and review counts (Correct answer)
- It uses too many numbers
- The star rating is too high to be believable
- App ratings are always subjective
Correct answer: It ignores competitors' ratings and review counts
The conclusion compares to 'all competitors' without referencing any competitor data.
Question 4: If x + 15 = 3x - 9, what is the value of x?
- 12 (Correct answer)
- 9
- 6
- 15
Correct answer: 12
15 + 9 = 3x - x; 24 = 2x; x = 12.
Question 5: Capital One's net charge-off rate fell from 2.8% to 2.1%. What is the percentage point decrease?
- 0.7 percentage points (Correct answer)
- 25%
- 0.07 percentage points
- 7%
Correct answer: 0.7 percentage points
Percentage point change = 2.8% - 2.1% = 0.7 percentage points (not a percentage decrease).
Question 6: Which of these best describes 'opportunity cost' in a financial decision?
- The value of the next best alternative foregone (Correct answer)
- The total cost of an investment
- The interest paid on a loan
- The tax rate applied to income
Correct answer: The value of the next best alternative foregone
Opportunity cost is what you give up by choosing one option over the next best alternative.
Question 7: A data table shows customer age groups: 18-25 (22%), 26-35 (34%), 36-50 (28%), 51+ (16%). What fraction of customers are under 36?
- 56% (Correct answer)
- 34%
- 50%
- 60%
Correct answer: 56%
Under 36 = 18-25 (22%) + 26-35 (34%) = 56%.
Capital One Assessment Test Capital One Practice Aptitude 5
A graph shows revenue growth of 8% per year.
If revenue is currently $50 million, what will it be after 2 years (rounded to nearest million)?