Finastra Assessment Test Finastra Math Assessment 5

Question 1

A financial report shows costs of $2.4M against revenue of $3.6M. What is the profit margin?

Accepted Answer

33.3%

Answer

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?

Accepted Answer

$48,000

Answer

$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.)

Accepted Answer

18 years

Answer

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?

Accepted Answer

$400,000

Answer

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?

Accepted Answer

936

Answer

18 × 52 = 936 accounts per year.

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