Finastra Assessment Test Finastra Math Assessment 3 — Questions and Answers
Question 1: A mortgage of $320,000 is paid off over 20 years with equal annual payments of $25,600. What total amount is paid?
- $512,000 (Correct answer)
- $345,600
- $640,000
- $320,000
Correct answer: $512,000
Total paid = 25,600 × 20 = $512,000.
Question 2: A bank charges a 2.5% origination fee on a $180,000 home loan. What is the fee?
- $3,600
- $4,500 (Correct answer)
- $2,700
- $5,000
Correct answer: $4,500
Fee = 0.025 × 180,000 = $4,500.
Question 3: A portfolio lost 20% of its value, then gained 25% the following year. What is the net percentage change from the original value?
- 5% gain (Correct answer)
- 0% change
- 5% loss
- 1% gain
Correct answer: 5% gain
Net = 0.80 × 1.25 = 1.00, meaning exactly 0% net change — but the calculation gives 1.00 so the answer is 0% change.
Question 4: If quarterly revenue figures are $1.2M, $1.5M, $0.9M, and $1.8M, what is the average quarterly revenue?
- $1.25M
- $1.35M (Correct answer)
- $1.4M
- $1.5M
Correct answer: $1.35M
Average = (1.2 + 1.5 + 0.9 + 1.8) / 4 = 5.4 / 4 = $1.35M.
Question 5: An analyst estimates that expenses will be $430,000 next year, which is 15% more than this year. What are this year's expenses?
- $373,913 (Correct answer)
- $365,500
- $380,000
- $400,000
Correct answer: $373,913
This year = 430,000 / 1.15 ≈ $373,913.
Question 6: A company's debt-to-equity ratio is 1.4 and its total equity is $5 million. What is its total debt?
- $5.4M
- $6M
- $7M (Correct answer)
- $3.57M
Correct answer: $7M
Debt = 1.4 × $5M = $7M.
Question 7: A savings account offers 3.6% APR compounded monthly. What is the monthly interest rate?
- 0.36%
- 0.30% (Correct answer)
- 0.43%
- 0.60%
Correct answer: 0.30%
Monthly rate = 3.6% / 12 = 0.30%.
Finastra Assessment Test Finastra Math Assessment 3
A mortgage of $320,000 is paid off over 20 years with equal annual payments of $25,600.
What total amount is paid?