Unlock hundreds more features
Save your Quiz to the Dashboard
View and Export Results
Use AI to Create Quizzes and Analyse Results

OR
Sign inSign in with Facebook
Sign inSign in with Google
Quizzes > Business & Finance

Finance Math Problems Quiz

Quick, free financial math test with instant results.

Editorial: Review CompletedCreated By: Manar El-NaggarUpdated Aug 26, 2025
Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
Paper art illustration for financial math skills quiz on teal background

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.

Easy
If you invest $1,000 at 5% simple interest per annum for 3 years, what total interest will you earn?
$1,150
$150
$1,500
$157.63
With simple interest, interest is computed on the principal only using I = P × r × t. So I = 1000 × 0.05 × 3 = $150. Unlike compound interest, the interest does not accrue interest in each period. For more details, visit .
If you invest $2,000 at 4% per annum compounded annually for 2 years, what is the future value?
$2,170.00
$2,163.20
$2,160.00
$2,080.00
Compound interest applies interest on both principal and accumulated interest. The future value = PV × (1 + r)^n = 2000 × (1.04)^2 = $2,163.20. More on compound interest at .
What is the present value of $1,000 received in 3 years at a discount rate of 6% per annum?
$839.62
$1,000.00
$1,120.00
$917.43
Present value discounts a future amount by PV = FV / (1 + r)^n = 1000 / (1.06)^3 ? $839.62. This reflects the time value of money concept. See more at .
Which statement best describes a nominal interest rate?
An interest rate stated without adjustment for compounding periods
The actual interest earned after accounting for compounding
The periodic interest rate divided by the number of periods
An interest rate adjusted for inflation
A nominal rate is the annual rate quoted without reflecting the effect of compounding within the year. It must be converted to an effective rate for actual yield calculations. More at .
Medium
If a nominal annual interest rate is 8% compounded quarterly, what is the effective annual rate (EAR)?
8.32%
8.00%
8.16%
8.24%
EAR = (1 + r/m)^m ? 1 = (1 + 0.08/4)^4 ? 1 ? 0.082432 or 8.2432%. It reflects the true annual yield. More at .
What is the present value of an ordinary annuity paying $500 annually for 5 years at 6% interest?
$2,106.18
$2,123.45
$2,000.00
$2,300.00
PV = PMT × [(1 ? (1 + r)^?n) / r] = 500 × [(1 ? (1.06)^?5) / 0.06] ? 2,106.18. This gives the current worth of future payments. See .
What is the approximate monthly payment on a $100,000 mortgage at a 5% annual rate amortized over 30 years?
$536.82
$550.00
$500.00
$600.00
Monthly payment = r × PV / [1 ? (1 + r)^?n] where r = 0.05/12 and n = 360, giving ? $536.82. This formula amortizes the loan over its term. More at .
If the nominal rate is 6% compounded semi-annually, what is the discount factor for one year?
0.94600
0.95000
0.94000
0.94340
The discount factor = 1 / (1 + r/m)^(m) = 1 / (1 + 0.06/2)^2 ? 1 / 1.0609 ? 0.94340. It shows the PV of $1 received in a year. See .
Hard
What is the price of a 5-year, $1,000 face value bond with an annual coupon of 6% if the yield to maturity is 5%?
$1,043.30
$1,000.00
$1,100.00
$950.00
Bond price = PV of coupons + PV of principal = 60×[1 ? (1.05)^?5]/0.05 + 1000/(1.05)^5 ? 1,043.30. When the coupon rate exceeds the yield, the bond price trades above par. More at .
Given uneven cash flows of - $1,000 at t=0 and $400 each at t=1 - 4, what is the internal rate of return (IRR) closest to?
15%
20%
22%
25%
IRR is the discount rate that makes NPV = 0; for these cash flows, the IRR is approximately 22%. It is found via trial and error or financial calculator. Learn more at .
What is the Macaulay duration of a 4-year, 10% annual coupon bond with a $1,000 face value if yield is 8%?
4.0 years
3.2 years
3.8 years
3.5 years
Duration is the weighted average time to receive cash flows; discounting at 8% yields about 3.5 years for this bond. It measures sensitivity to interest rate changes. See .
What is the net present value (NPV) of a project requiring an initial $500 investment and generating $200, $250, and $300 over the next three years at a 10% discount rate?
$86.18
$100.00
$113.82
$150.00
NPV = - 500 + 200/1.10 + 250/1.10^2 + 300/1.10^3 ? 113.82. A positive NPV means the project adds value. More at .
Expert
Calculate the convexity of a 2-year bond with an 8% annual coupon and $1,000 face value when the yield is 10%.
4.50
3.90
5.00
4.71
Convexity measures the curvature of the price-yield relationship; using the standard formula for this bond yields about 4.71. It refines duration's estimate for large yield changes. Read more at .
Using bootstrapping, if a 1-year zero rate is 2% and a 2-year annual coupon bond (5% coupon) is priced at 98% of par, what is the implied 2-year zero rate?
6.12%
6.50%
6.00%
5.50%
Bootstrapping solves 0.98 = 5/1.02 + 105/(1 + r2)^2 ? r2 ? 6.12%. It extracts zero-coupon yields from coupon bonds. See .
0
{"name":"If you invest $1,000 at 5% simple interest per annum for 3 years, what total interest will you earn?", "url":"https://www.quiz-maker.com/QPREVIEW","txt":"Easy, If you invest $1,000 at 5% simple interest per annum for 3 years, what total interest will you earn?, If you invest $2,000 at 4% per annum compounded annually for 2 years, what is the future value?","img":"https://www.quiz-maker.com/3012/images/ogquiz.png"}

Study Outcomes

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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

  1. 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.

  2. 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!"

  3. 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."

  4. 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.

  5. 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.

Make a Quiz (FREE) Copy & Edit This Quiz Create a Quiz with AI

Finance & Economics Quizzes

Powered by: Quiz Maker