Quantitative Reasoning Test
Quantitative Reasoning Test
1) Format
This test is up to 40 minutes long and consists of 16 questions.
2) Scoring
You start with 12 points
For every question you get right, you score 4 points
If you leave a question blank, you neither gain nor lose a point
If you answer a question incorrectly, YOU ARE DEDUCTED 1 POINT
4) Rules
Please clearly circle your answers
Extra paper for calculations is provided
No calculators are allowed
You need to return the question book to us at the end of the test
No phones
(A) 165 (B) 260 (C) 265 (D) 290 (E) 310
3 In New York City, an estate agent claims that the market value of
a house can be expected to double every 8 years. If this is true,
a house originally bought for $8,000 in 1963 would most likely
have a market value in 1995 of:
(A) $880.00 (B) $452.10 (C) $440.00 (D) $232.10 (E) $220.00
5 A car dealer has a large inventory of sports cars, of which 35% are
red, 25% are blue, 10% are black and the remainder are other
colours. For each color of sports car, 80% are equipped with
central-locking and of these, 30% have automatic transmission.
What is the probability that a sports car chosen at random will not
be black and will have both central locking and automatic
transmission?
3 12 27 6 9
(A) (B) (C) (D) (E)
125 125 125 125 125
6 A 4,000 liter oil tank, half-full of oil, is being filled by a pipe with a
flow rate of 1 kiloliter every 2 minutes. At the same time, the tank
is losing oil from two drains at a rate of 1 kiloliter every 4 minutes
and 1 kiloliter every 6 minutes. Approximately how many minutes
does it take to fill up the tank completely?
(A) 30% (B) 35% (C) 39% (D) 40% (E) 45%
Total Total
cost, cost,
$ $
40 30
30
10
0 2 0 1
Production, '000 balls Production, '000 boxes
(A) $100 (B) $120 (C) $150 (D) $160 (E) $180
10 XYZ Plc issues a 3-year $15m bond with an annual coupon of 10%.
Assume the discount rate is 5%. Bonds are valued at the present
value of future cash flows using the market interest rate. What is
the market value of this bond?
(A) $13m (B) $14m (C) $15m (D) $16m (E) $17m
11 What is the current yield of the bond after 1 year if the price of the
bond is 102% of par value? Assume there has already been one
coupon payment.
(A) ~4% (B) ~10% (C) ~9% (D) ~11% (E) ~8%
12 What is the most likely cause that has caused the bond price to
increase?
13 Jacob makes a $3 investment that pays him $5 for every day that it
snows in 2017. Steven invests the same amount of money on the
same day as Jacob in a security that pays him $5 for every day
that it rains in 2017. In 2017, it rains once in January and once in
February and snows once in November and once in December.
Which one of the following is true?
16 David Ortiz has a 0.333 batting average (he gets on base one out
of every three chances). Ortiz will have three at-bats today. What
is the probability that he gets on base at least once? (Each at-bat
is independent)