# Financial Maths Online Test

Simple interest is charged on :

Compound interest is charged on :

Nominal interest is charged :

Annual effective interest is same as

If K is the initial amount deposited in a bank and &quot;i&quot; is the simple interest rate applied for the life time of investment, then the accumulated value of the fund after &quot;t&quot; years will be :

If K is the initial amount of the deposit and &quot;i&quot; is the compound interest applied on the investment, then the accumulated value of the fund after &quot;T&quot; years will be &quot;

if i(m) is the nominal interest rate compouned m times a year, then the accumulated value of 1 after a year will be :

Annuity can be defined as series of payments (equal or unequal) at certain intervals :

An ordinary or immediate annuity has more value than annuity-due

Present value of an investment can be defined as the &quot;discounted-value&quot; of that investment at a certain rate of interest.

Present value of an annuity immediate with n equal payments of K at interest rate i is

Future value of an annuity-immediate with n equal payments of K at interest rate i is :

For the buyer, bonds can be defined as :

The interest paid during the life time of bond is in the form of :

The final lump sum value paid at the maturity of the bond is known as :

Callable bonds can be redeemed before their maturity

Short-Selling is profitable when

If S is the current price of the stock with continuous divident rate d , then forward price of the stock at time t is calculated as :

arbitrage can be defined as :

Description:

This test will provide necessary information for the students who have or will be taking course on financial maths. The questions are designed to cover the important topics in the Financial Mathematics course. It contains questions of annuities, bonds, and stocks. The detailed lectures will be provided in the classes later on. This test is a trial for students to check their basic knowledge and needs.

The classes will be scheduled according to the needs of students that will cover all the above topics in detail with lots of practice questions. This is important for students in college, university or those who are preparing for professional examinations like ACCA, Society of Actuaries, CFA etc.

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rahim gowani
A Professional Math Teacher Preparing for Math, Finance, and Stats
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