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Financial Mathematics practice questions — GCSE Maths

10 free multiple-choice problems on financial mathematics, ordered to match GCSE Maths difficulty, each with a full worked solution. No account needed — and there's a fresh problem set every day.

Problems & worked solutions

Problem #0257 International

Problem 1 — Financial Mathematics

At 7%7\% annual compound interest, the rule of 7272 estimates that money doubles in approximately:

Show answer & worked solution
  1. A. 77 years
  2. B. 1010 years✓ correct
  3. C. 1414 years
  4. D. 7272 years

727≈10.3\dfrac{72}{7} \approx 10.3 years.

Problem #0255 International

Problem 2 — Financial Mathematics

An item priced at $80\$80 is on sale at a 25%25\% discount. The sale price is:

Show answer & worked solution
  1. A. $55\$55
  2. B. $60\$60✓ correct
  3. C. $65\$65
  4. D. $75\$75

Discount =20= 20. Sale price =80−20=$60= 80 - 20 = \$60.

Problem #0254 International

Problem 3 — Financial Mathematics

A deposit of $2,000\$2{,}000 earns annual compound interest at 5%5\%. The balance after 22 years is:

Show answer & worked solution
  1. A. $2,100\$2{,}100
  2. B. $2,200\$2{,}200
  3. C. $2,205\$2{,}205✓ correct
  4. D. $2,500\$2{,}500

A=2000⋅1.052=2000⋅1.1025=$2,205A = 2000 \cdot 1.05^2 = 2000 \cdot 1.1025 = \$2{,}205.

Problem #0258 International

Problem 4 — Financial Mathematics

A worker invests $1,000\$1{,}000 at the end of each year into an account paying 5%5\% annual compound interest. The account balance at the end of year 33 (just after the third deposit) is:

Show answer & worked solution
  1. A. $3,000\$3{,}000
  2. B. $3,075\$3{,}075
  3. C. $3,152.50\$3{,}152.50✓ correct
  4. D. $3,310\$3{,}310

FV=1000⋅1.053−10.05=1000⋅0.1576250.05=1000⋅3.1525=$3,152.50FV = 1000 \cdot \dfrac{1.05^3 - 1}{0.05} = 1000 \cdot \dfrac{0.157625}{0.05} = 1000 \cdot 3.1525 = \$3{,}152.50.

Problem #0256 International

Problem 5 — Financial Mathematics

The price of a product before VAT is $200\$200. After applying 19%19\% VAT, the final price is:

Show answer & worked solution
  1. A. $219\$219
  2. B. $236\$236
  3. C. $238\$238✓ correct
  4. D. $262\$262

200⋅1.19=$238200 \cdot 1.19 = \$238.

Problem #0251 International

Problem 6 — Financial Mathematics

15%15\% of 200200 is:

Show answer & worked solution
  1. A. 1515
  2. B. 3030✓ correct
  3. C. 4545
  4. D. 300300

15100⋅200=30\dfrac{15}{100} \cdot 200 = 30.

Problem #0252 International

Problem 7 — Financial Mathematics

A price goes from $80\$80 to $100\$100. The percentage increase is:

Show answer & worked solution
  1. A. 20%20\%
  2. B. 22.5%22.5\%
  3. C. 25%25\%✓ correct
  4. D. 80%80\%

100−8080⋅100%=2080⋅100%=25%\dfrac{100 - 80}{80} \cdot 100\% = \dfrac{20}{80} \cdot 100\% = 25\%.

Problem #0253 International

Problem 8 — Financial Mathematics

A deposit of $1,000\$1{,}000 earns simple interest at 4%4\% per year. After 55 years, the total interest earned is:

Show answer & worked solution
  1. A. $40\$40
  2. B. $50\$50
  3. C. $200\$200✓ correct
  4. D. $1,200\$1{,}200

I=1000⋅0.04⋅5=200I = 1000 \cdot 0.04 \cdot 5 = 200.

Problem #0260 International

Problem 9 — Financial Mathematics

A bank advertises 12%12\% annual rate compounded monthly. The effective annual rate is closest to:

Show answer & worked solution
  1. A. 12%12\%
  2. B. 12.68%12.68\%✓ correct
  3. C. 13.5%13.5\%
  4. D. 14.4%14.4\%

 ⁣(1+0.1212)12−1=1.0112−1≈1.1268−1=0.1268≈12.68%\!\left(1 + \dfrac{0.12}{12}\right)^{12} - 1 = 1.01^{12} - 1 \approx 1.1268 - 1 = 0.1268 \approx 12.68\%.

Problem #0259 International

Problem 10 — Financial Mathematics

A stock falls 20%20\%, then rises 20%20\%. The net change is closest to:

Show answer & worked solution
  1. A. 0%0\%
  2. B. −2%-2\%
  3. C. −4%-4\%✓ correct
  4. D. +4%+4\%

After both moves, the value is 0.8⋅1.2=0.960.8 \cdot 1.2 = 0.96 — a 4%4\% net loss.

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