1.4 Financial applications of geometric sequences Quiz
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1. 1000 USD is invested at 8% per year compounded quarterly for 2 years. Find the final value.
- A. 1171.66 USD
- B. 1166.40 USD
- C. 1160.00 USD
- D. 1368.57 USD
2. A machine bought for 50 000 AED depreciates 10% per year. What is it worth after 3 years?
- A. 36 450 AED
- B. 35 000 AED
- C. 66 550 AED
- D. 45 000 AED
3. Interest is 5% and inflation is 3% per year. Using the real-rate approach, what rate gives the real value?
- A. 2%
- B. 8%
- C. 1.67%
- D. 15%
4. Which gives the largest value after 1 year on 1000 EUR?
- A. 6% compounded monthly
- B. 6% compounded annually
- C. 6% compounded half-yearly
- D. 6% simple interest
5. 20 000 EUR is invested at 4.5% compounded half-yearly. Which expression gives the value after 6 years?
- A.
- B.
- C.
- D.