Finastra Assessment Test Finastra Math Assessment 5 — Questions and Answers
Question 1: A financial report shows costs of $2.4M against revenue of $3.6M. What is the profit margin?
- 33.3% (Correct answer)
- 40%
- 66.7%
- 25%
Correct answer: 33.3%
Profit margin = (3.6 - 2.4) / 3.6 × 100 = 1.2 / 3.6 × 100 ≈ 33.3%.
Question 2: An ATM holds 1,500 notes: 60% are $20 bills and the rest are $50 bills. What is the total cash in the ATM?
- $27,000
- $48,000 (Correct answer)
- $45,000
- $51,000
Correct answer: $48,000
$20 bills: 900 × $20 = $18,000; $50 bills: 600 × $50 = $30,000; total = $48,000.
Question 3: If inflation runs at 4% per year, how many years will it take for prices to approximately double? (Use the Rule of 72.)
- 14 years
- 18 years (Correct answer)
- 20 years
- 24 years
Correct answer: 18 years
Rule of 72: 72 / 4 = 18 years for prices to double.
Question 4: A hedge fund charges a '2 and 20' fee on a $5M investment that returns 30%. What is the total fee paid?
- $100,000
- $200,000
- $400,000 (Correct answer)
- $300,000
Correct answer: $400,000
Management fee = 2% × $5M = $100,000; performance fee = 20% × ($5M × 30%) = 20% × $1.5M = $300,000; total = $400,000.
Question 5: A branch closes 18 accounts per week. At this rate, how many accounts does it close in a 52-week year?
- 756
- 936 (Correct answer)
- 864
- 1,040
Correct answer: 936
18 × 52 = 936 accounts per year.
Question 6: A loan payment of $850 per month includes $320 in interest. What percentage of the payment is principal?
- 37.6%
- 52.9%
- 62.4% (Correct answer)
- 47.1%
Correct answer: 62.4%
Principal = $850 - $320 = $530; percentage = 530 / 850 × 100 ≈ 62.4%.
Question 7: A fintech startup's valuation is 8× its annual recurring revenue of $3.75M. What is the startup's valuation?
- $25M
- $28M
- $30M (Correct answer)
- $32M
Correct answer: $30M
Valuation = 8 × $3.75M = $30M.
Finastra Assessment Test Finastra Math Assessment 5
A financial report shows costs of $2.4M against revenue of $3.6M.
What is the profit margin?