Quiz  /  Investment Class 11 MCQ Questions With Answers

  • 1. 
    Which statement describes SIMPLE interest?

  • The same amount of interest every time
  • Interest on interest
  • The amount of interest goes up every time

  • 2. 
    You have money to invest. The bank offers you 6% at the end of the year or 0.5% every month. Which is the better option?

  • 6% at the end of the year.
  • 0.5% every month.
  • Not enough information to determine.

  • 3. 
    What is 6.75% as a decimal?

  • 0.675
  • 0.0675
  • 0.00675
  • 6.75

  • 4. 
    You invest $1000 at 4.6% interest, compounded annually, for 15 years. How much is your investment worth at the end of 15 years?

  • $1963.25
  • $2210.90
  • $1059.07
  • $1690.00

  • 5. 
    You invest $2000 at 4.5% SIMPLE interest for 5 years. What is the total after 5 years?

  • $2225.00
  • $2450.00
  • $12,819.47
  • $2492.36

  • 6. 
    You invest $400 at %6 for one year (compounded annually). What is the total after 1 year?

  • $24.00
  • $424.00
  • $402.40
  • $487.63

  • 7. 
    Which is better for you when you are investing money?

  • Compound interest
  • Simple interest

  • 8. 
    You borrow $4000 for 5 years at 10% compounded monthly. How much do you owe after 5 years?

  • $4,346.12
  • $6,581.24
  • $6,442.04
  • $6,000.00
  • $4,442.00

  • 9. 
    You borrow money for 3 years at 8% interest. You are given a choice of simple interest or compound interest. Which is the better option?

  • Compound interest
  • Simple interest
  • Not enough information to determine

  • 10. 
    The bank lists their (annual) interest rate at 4%. If interest is compounded monthly, what percentage do you get every month?

  • 0.33%
  • 4%
  • 0.04%
  • 0.03%
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