Finance Math Problems Quiz
Quick, free financial math test with instant results.
Use this quiz to practice finance math problems for interest, loans, and investments, and get quick feedback. See where you need practice and improve speed and accuracy. To build wider skills, try our corporate finance quiz, a financial management quiz, or this financial math test.
Study Outcomes
- Understand Simple and Compound Interest -
Master the formulas for calculating simple and compound interest by working through targeted financial math problems, laying a solid foundation for more advanced calculations.
- Apply Present and Future Value Concepts -
Use present and future value techniques in a financial math test to determine the worth of investments over time and make informed financial decisions.
- Analyze Loan Amortization Schedules -
Break down amortization tables to track how loan payments are allocated between principal and interest, a key skill for success on any financial mathematics test.
- Solve Investment Return and Risk Scenarios -
Calculate expected returns and assess risk levels in various investment problems, sharpening your ability to tackle real-world quantitative finance questions.
- Evaluate Annuities and Mortgage Payments -
Compute periodic payments and total interest costs for annuities and mortgages, equipping you to handle diverse financial math problems with confidence.
- Interpret Quiz Feedback for Improvement -
Analyze your scored quiz results to identify strengths and weaknesses, allowing you to refine your strategies and boost accuracy on future financial math tests.
Cheat Sheet
- Time Value of Money: Present & Future Value -
Master the PV and FV formulas (FV = PV×(1+r)n; PV = FV/(1+r)n) to tackle core financial math problems on growth and discounting. These equations, widely taught in university finance courses and CFA Institute materials, form the backbone of any financial mathematics test. A handy mnemonic is "FV forward, PV backward," reminding you which direction to solve.
- Compound vs. Simple Interest -
Understand that simple interest (I = P×r×n) calculates only on the principal, while compound interest reinvests earnings each period (A = P(1+r/k)kn). Many financial math test questions hinge on converting nominal to effective rates, so practice with different compounding frequencies (k). Remember: "More compounding, more return!"
- Annuities & Perpetuities Valuation -
Learn the present value of an ordinary annuity (PV = PMT×[1−(1+r)−n]/r) and the perpetuity formula (PV = PMT/r), as featured in standard finance textbooks from Bodie, Kane, and Marcus. These formulas frequently pop up in finance quizzes when valuing loans or preferred stocks. Tip: For perpetuities, think "permanent payment, divide by rate."
- Bond Pricing & Yield to Maturity -
Apply the bond valuation formula - PV of coupons plus PV of face value - to compute price or solve for yield to maturity (YTM) via trial-and-error or financial calculator. This skill, highlighted in academic journals and regulatory guidelines, is key for investment scenarios. Pro advice: approximate YTM by averaging current yield and capital gain yield.
- Loan Amortization & Payment Calculations -
Use the loan payment formula PMT = [r×PV]/[1−(1+r)−n] to build an amortization schedule, showing principal and interest breakdown each period. Real-world lenders and university finance labs emphasize this for mortgage and car loan problems. Practice with Excel's PMT function to speed up calculations on your financial math test.