BBA Finance Simple and Compound Interest — practice questions
22 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice BBA Finance Simple and Compound Interest in the app →The idea that money available now is worth more than the same amount later is the:A friend puts 1,000 in an account paying 4% a year. After one year the balance is:Leaving that same money for a second year at 4% gives a balance of:The extra 1.60 earned in that second year is interest on:Interest earned in later periods on interest already earned is called:A person deposits 300 in an account paying 5% a year. After one year they have:A company earning 2.50 per share sees a 10% rise the next year. New earnings per share are:A shop raising a 50 rupee item by 3% next year will price it at:The value a present sum grows to at a future date is called its:The value today of a sum to be received later is called its:The interest rate used to bring a future cash flow back to today is called the:Bringing a future amount back into today's rupees is described as the exact opposite of:A house listed at 400,000 today, with prices rising 4% a year for six years, needs which calculation?A shortcut that estimates how long money takes to double is the:Using that shortcut, savings earning 9% a year will take about how long to double?Using the same shortcut at 6% a year, money doubles in about:Using it at 12% a year, money doubles in about:When compounding happens more often within a year, the interest income is received:Because of that, 200 at a given rate compounded quarterly rather than annually will grow to:A single one-time receipt or payment of cash is described as a:The time value of money is linked to inflation because rising prices:Someone seeking the highest interest rate available should remember that investments are usually: