Free Finastra Math Assessment Test Questions and Answers — Questions and Answers

Question 1: What is 7.25% expressed in decimal form?

0.725
.725
7.25
0.0725 (Correct answer)

Correct answer: 0.0725

To convert a percentage to its decimal form, you divide the percentage by 100. This is equivalent to moving the decimal point two places to the left. So, 7.25% becomes 7.25 / 100, which equals 0.0725.

Question 2: Decimalize 150% to get its value.

0.15
15
1.5 (Correct answer)
0.15

Correct answer: 1.5

To convert a percentage to its decimal form, you divide the percentage by 100. This is equivalent to moving the decimal point two places to the left. So, 150% becomes 150 / 100, which equals 1.5.

Question 3: Which of these situations calls for the use of the formula A=Pert?

Continuously (Correct answer)
Daily
Monthly
Quarterly

Correct answer: Continuously

The formula A = Pe^(rt) is specifically used for calculating compound interest when the interest is compounded *continuously*. The 'e' represents Euler's number, which is a mathematical constant used in continuous growth models. For interest compounded at discrete intervals (daily, monthly, quarterly), a different formula, A = P(1 + r/n)^(nt), is typically used.

Question 4: If interest is compounded every month, what is "n"?

365
12 (Correct answer)
2
4

Correct answer: 12

In the compound interest formula A = P(1 + r/n)^(nt), 'n' represents the number of times the interest is compounded per year. If interest is compounded every month, there are 12 months in a year. Therefore, 'n' would be 12.

Question 5: If interest is compounded every quarter, what is "n"?

2
12
1
4 (Correct answer)

Correct answer: 4

In the compound interest formula A = P(1 + r/n)^(nt), 'n' represents the number of times the interest is compounded per year. If interest is compounded every quarter, there are four quarters in a year. Therefore, 'n' would be 4.

Question 6: How much money would you have after four years if you invested $300 at 6% compounded continuously?

$381.15
$381.14
$381.37 (Correct answer)
$1,274.01

Correct answer: $381.37

To calculate money compounded continuously, use the formula A = Pe^(rt), where A is the final amount, P is the principal ($300), e is Euler's number (approximately 2.71828), r is the annual interest rate (0.06), and t is the time in years (4). Plugging in the values: A = 300 * e^(0.06 * 4) = 300 * e^(0.24). This calculation yields approximately $381.37.

Question 7: You are paying $990 for a television with 9% sales tax. How much will the TV cost in the end?

$1,881.00
$1,079.10 (Correct answer)
$1,079.00
$1,709.1

Correct answer: $1,079.10

To find the total cost, first calculate the sales tax amount. Multiply the original price ($990) by the sales tax rate (9% or 0.09), which equals $89.10. Then, add this tax amount to the original price: $990 + $89.10 = $1,079.10. This is the final cost of the television.

Free Finastra Math Assessment Test Questions and Answers

What is 7.25% expressed in decimal form?