The following math revision questions are provided in support of the math tutorial on Applications of Percentage in Banking. Simple and Compound Interest. In addition to this tutorial, we also provide revision notes, a video tutorial, revision questions on this page (which allow you to check your understanding of the topic) and calculators which provide full, step by step calculations for each of the formula in the Applications of Percentage in Banking. Simple and Compound Interest tutorials. The Applications of Percentage in Banking. Simple and Compound Interest calculators are particularly useful for ensuring your stet-by-step calculations are correct as well as ensuring your final result is accurate.

**Not sure on some or part of the Applications of Percentage in Banking. Simple and Compound Interest questions? Review the tutorials and learning material for Applications of Percentage in Banking. Simple and Compound Interest**

Tutorial ID | Title | Tutorial | Video Tutorial | Revision Notes | Revision Questions | |
---|---|---|---|---|---|---|

5.4 | Applications of Percentage in Banking. Simple and Compound Interest |

**1.** . A customer deposited $2,400 in his savings account and after two years, he withdrew $2,700 from his account leaving it with zero balance. What is the interest this customer earned from the bank?

- $2,700
- $300
- 8.89%
- 4.45%

**Correct Answer: B**

**2.** . A customer deposited $6,800 in his savings account (at simple interest rate) and after five years, he withdrew $8,000 from his account leaving it with zero balance. What is the yearly interest rate the bank applied to this customer?

- 6.8%
- 8.5%
- 17.6%
- 8.8%

**Correct Answer: D**

**3.** . A bank applies annually 3.8% simple interest rates. What is the balance of a customer in this bank after four years if he deposits $5,000 today?

- $380
- $5,380
- $5,760
- $10,760

**Correct Answer: B**

**4.** . The total interest accumulated in a savings account in five years is $2,000 and the actual balance is $14,620. What is the yearly interest rate if the bank applies simple interest rates to its customers?

- 7.9%
- 15.8%
- 13.68%
- 6.84%

**Correct Answer: A**

**5.** . The average annual inflation rate (increase in the living cost including prices) in country X during the past five years was 5% per year. How much does an item cost today if five years ago it was worth $50?

- $63.8
- $62.5
- $60.0
- $55.0

**Correct Answer: A**

**6.** . The price of a house three years ago was $100,000 and now it is worth $126,000. What was the average inflation rate during this period?

- 1.26%
- 8.0%
- 11.6%
- 12.6%

**Correct Answer: B**

**7.** . A customer deposits $7,000 in his savings account where the bank applies a 2.4% yearly interest compounded once in a year. What will the balance of this customer be after six years?

- $8,070
- $8,092
- $10,920
- $15,600

**Correct Answer: A**

**8.** . A customer's actual balance after four years of depositing funds in a bank is $11,234. Calculate the original amount he deposited if the bank applies 3% interest rates compounded twice a year.

- $10,000
- 10,560
- $9,973
- $9,768

**Correct Answer: C**

**9.** . A customer is undecided about the best bank to choose to deposit his savings. There are three banks available in his city: A, B and C. Bank A applies simple interest rates of 2.7% annum; bank B applies 2.5% interest rates compounded once a year, while bank C applies 2.2% interest rates compounded twice a year. Which bank provides a higher earning after three years?

- Bank A
- Bank B
- Bank C
- All banks provide the same earning during the given period

**Correct Answer: A**

**10.** . Alice wants to buy a house that costs $150,000 but she has only $130,000 saved so far. She decides to borrow the rest from a bank that applies 2.7% of interest compounded thrice in a year. She agrees to pay off the loan in five years. How much more than the actual price Alice has to pay for her new house?

- $1,620
- $2,800
- $2,877
- $4,860

**Correct Answer: C**

Enjoy the "Applications of Percentage in Banking. Simple and Compound Interest" practice questions? People who liked the "Applications of Percentage in Banking. Simple and Compound Interest" practice questions found the following resources useful:

- Practice Questions Feedback. Helps other - Leave a rating for this practice questions (see below)
- Percentages Math tutorial: Applications of Percentage in Banking. Simple and Compound Interest. Read the Applications of Percentage in Banking. Simple and Compound Interest math tutorial and build your math knowledge of Percentages
- Percentages Revision Notes: Applications of Percentage in Banking. Simple and Compound Interest. Print the notes so you can revise the key points covered in the math tutorial for Applications of Percentage in Banking. Simple and Compound Interest
- Check your calculations for Percentages questions with our excellent Percentages calculators which contain full equations and calculations clearly displayed line by line. See the Percentages Calculators by iCalculator™ below.
- Continuing learning percentages - read our next math tutorial: Definition of Percentages

We hope you found this Math tutorial "Applications of Percentage in Banking. Simple and Compound Interest" useful. If you did it would be great if you could spare the time to rate this math tutorial (simply click on the number of stars that match your assessment of this math learning aide) and/or share on social media, this helps us identify popular tutorials and calculators and expand our free learning resources to support our users around the world have free access to expand their knowledge of math and other disciplines.