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tvom test 2

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Marks: 30

Q.   1

As certain the compound value and compound interest of an amount of ‘75,000 at

8 percent compounded semiannually for 5 years.

 

Q.   2

A doctor is planning to buy an X – Ray machine for his hospital. He has two options. He can either purchase it by making cash payment of 5 lakhs or 6‘15,000 are to be paid in six equal annual installments. Which option do you suggest to the doctor assuming the rate of return is 12 percent? Present value of annuity of Rs. 1 at 12 percent rate of discount for six years is 4.111

 

Q.   3

Calculate if ‘10,000 is invested at interest rate of 12% per annum, what is the amount after 3 years if the compounding of interest is done half yearly?

 

Q.   4

Present value ‘’ is the current value of a ‘’ Future Amount ‘’. The statement is correct or not?

 

Q.   5

Simple interest may be defined as interest that is calculated as a simple percentage of the restricted amount is true or false?

 

Q.   6

Time value of money indicates that

 

Q.   7

Accounting financial management à liquidity decisions

 

Q.   8

Richa borrowed a sum of Rs. 4800 from Ankita as a loan. She promised Ankita that she will pay it back in two equal installments. If the rate of interest be 5% per annum compounded annually, find the amount of each installment.

 

Q.   9

A builder borrows Rs. 2550 to be paid back with compound interest at the rate of 4% per annum by the end of 2 years in two equal yearly installments. How much will each installment be?

 

Q.   10

A man buys a scooter on making a cash down payment of Rs. 16224 and promises to pay two more yearly installment of equivalent amount in next two years. If the rate of interest is 4% per annum, compounded yearly, the cash value of the scooter, is

 

Q.   11

The populations of Chandigarh is increase at a rate of 1% for first year, it decrease at the rate of 4% for the second year and for third year it again increase at the rate of 5%. Then what will be the population of Chandigarh are 50000.

 

Q.   12

A person bought a new machine. The value of the machine is Rs. 10000. If rate of depreciation is 5 % per annum, then what will be the value of the machine after 2 years?

 

Q.   13

A sum of Rs. 6600 was taken as a loan. This is to be repaid in two equal annual installments. If the rate of interest be 20% compounded annually then the value of each installment is

 

Q.   14

Simple interest on a sum at 5% per annum for 2 years is Rs. 60. The compound interest on the same sum for the same period is

 

Q.   15

What will be the amount if a sum of Rs. 10000 is placed at compound interest for 3 year while rate of interest for the first, second and third years is 2, 5 and 10 percent, respectively? 

Q.   16

An electronic type writer worth Rs. 12000 deprecates @ 10% P.A. ultimately it was sold for Rs. 200. Estimate its effective life during which it was in use?

Q.   17

An annuity with an extended life is classified as

Q.   18

Periodic rate if it is multiplied with per year number of compounding periods is called

Q.   19

A deposit of Rs. 100 is placed into a college fund at the beginning of every month for 10 years. The fund Earns 9% annual interest, compounded monthly, and paid at end of the month. How much is in the account right after the last deposit?

Q.   20

Relationship between annual nominal rate of interest and annual effective rat6e of interest, if frequency of compounding is greater than one:

Q.   21

Mr. X invests Rs. 10,000 every year starting from today for next: 10 years suppose interest rate is 8% per annual compounded annually. Calculate future value of the annuity. 

Q.   22

How much amount is required to be invested every year so as to accumulate Rs. 3, 00, 000 at the end of 10 years, if interest is compounded annually at 10%?

Q.   23

If an amount is kept at S.I. it earns an interest of Rs. 600 in first two years but when kept at compound interest it earns an interest of 660 for the same period, then the rate of interest and principal amount respectively are 

Q.   24

The future value of an annuity Rs. 1,000. Made annually for 5 year the interest of 14% compounded annually is:

Q.   25

If Rs. 10,000 is invested at 8% per year compound quarterly, then the value of the investment after 2 years is [given (1 + 0.2)8 = 1.171]

Q.   26

A bank pays 10% rate of interest; interest being calculated half yearly. A sum of Rs. 400 is deposited in the bank. The amount at the end of 1 year will be

Q.   27

A Certain money doubles itself in 10 years. When deposited on simple interest. It would triple itself in________

Q.   28

A man deposited t 8,000 in a bank for 3 years at 5% per annum compound interest, after 3 years he will get

Q.   29

If in two years’ time a principal of Rs. 100 amounts to Rs. 121 when the interest at the rate of r% is compounded annually, then the value of r will be

Q.   30

A certain sum of money Q was deposited for 5 year and 4 months 4.5% simple interest and amounted to Rs 248, and then the value of Q is 

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