Military: CFAT Practice Test Questions with Answers in PROBLEM SOLVING

Saturday, August 5, 2023

***

***

1. An investor's portfolio increased by 43.9% to $210,000. What was his initial investment?

a. $143,595

b. $145,935 --- Ans

c. $154,395

d. $149,435

Solution

Given

43.9% increase

$210,000 new value

let

x = initial investment

210,000

= x + 43.9% x

= x + 0.439x

= 1.439x

x = 210,000/1.439

x = $145,935

2. The price of gold per ounce (oz) is $1,944.10 USD. With an investment of $49,000 USD, how many ounces of gold can you purchase?

a. 23.5 oz

b. 24.2 oz

c. 22.5 oz

d. 25.2 oz --- answer

Solution

Divide the amount of investment by the price of gold per ounce.

ounces (oz) of gold

= 49,000/1,944.10

= 25.2 oz

***

***

***

Military