Free Finastra Math Assessment Test Questions and Answers

Question 1

What is 7.25% expressed in decimal form?

Accepted Answer

0.0725

Answer

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.

Accepted Answer

1.5

Answer

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?

Accepted Answer

Continuously

Answer

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"?

Accepted Answer

12

Answer

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"?

Accepted Answer

4

Answer

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.

Finastra Assessment Test Practice Test

Finastra Assessment Test Practice Test

Free Finastra Math Assessment Test Questions and Answers