Accountancy Maths

8/18/2019 Accountancy Maths

1/30

Q1 – In the formula , Interest =Principal X Rate X Time, Interest is

_____ and principal is _____ ?

(a)Total interest, initial amountorro!ed or lent

()Rate of interest, Total amountpa"ale

(c)Interest per annum, #mount !hichis principall" a$reed to e paid

(d)%inimum interest, Total amountpa"ale

e &one of the ao'e


2/30

Q In the formula , Interest =Principal X Rate X Time, Rate is

_____ and Time is ______ ?(a)*an+ rate of interest, ne "ear period of

time

()Rate percenta$e of interest per annum,period e-pressed in "ear !hich someamount is orro!ed or lent

(c)%ar+et rate per annum, Periodicit" of

interest char$in$(d)%ar+et rate of interest, Initial period

.-ed for repa"ment

(e)&one of the ao'e


3/30

Q3 A purchased a scooter byobtaining a loan of Rs 30000 at

the rate of 15% simple interestp.a. How much interest in total

will pay if the loan is taen for 3years !(a)Rs /0()Rs 1,0

(c)Rs 10(d)Rs 120

(e)Rs 10


4/30

Q / Installment is ?

(a)3i-ed amount, that is to e repaidre$ularl" in a speci.ed period

()3i-ed amount, that is repaid at !ill of

the orro!er durin$ an" period(c)3i-ed amount of interest repaid " the

orro!er durin$ an" speci.ed period

(d)3i-ed amount of repa"ment of theprincipal amount onl"

(e)&one of the ao'e


5/30

Q 0 #mount is ______ !hereas principalis ___ ?

(a)Present 4alue, 3uture 4alue

()Past 'alue, present 'alue

(c)3uture 'alue, present 'alue

(d)Present 'alue, past 'alue

(e)&one of the ao'e


6/30

Q5 – 6hich of the follo!in$ istrue ?

(a)#mount = (Principal 7 Interest) or (#=P7 I)

()#mount = (Principal 7 Principal X Rate

X Time ) or ( # = P 7 Prt)(c)#mount 7 8 Principal(1 7 Rate X Time) 9

or 8 # = P (1 7 rt ) 9

(d)Interest (#mount – Principal) or I = (#P)

(e)Interest = ( 3uture 4alue – Present 4alue)or I = (34 – P4)

(f) #ll of the ao'e


7/30

Q : – 6hich of the follo!in$s aretrue ?

(a)P = I;RT

()R = I;PT

(c)T = I;PR

(d)# 7 P(1 7 rt)

(e)I = # – P

(f)#ll of the ao'e


8/30

Q – < # deposit matures to Rs /,after 2 "ears at simple interest of :

per annum> 6hat is the principalamount of the deposit ?

(a)1

()10

(c)

(d)1


9/30

Q 6hat is the formula for char$in$compound interest !ith annual

compoundin$ ?

(a)# = P(1 7 r)@

()# = Prt(c)# = Prt 7 P(1 7 r)

(d)&one of the ao'e

(e)#ll of the ao'e


10/30

Q 1 Ramesh has deposited Rs1 for 2 "ears> The interest is

compounded annuall" at 1> 6hat!ill e the amount recei'ale "Ramesh at the end of the 2 "ears

period ?(a)12

()1

(c)1211

(d)1221(e)1212


11/30

Q 11 – In the pre'ious Auestion , (17r)2 ecomes (1 7 1;1) 2 = ( 1 7>1 ) 2 = ( 1>1) 2 > Bo! is the .$urecalculated ?(a) *" manual calculation, as ( 1>1 )2 = 1>1

X 1>1 X 1>1

()Csin$ calculator

(c)Csin$ %D E-cel and appl"in$ F function( e-ponential function) ie (1>1 )2 = ( 1 >1)F 2

(d)Csin$ future 'alue chart, !here 'alue of anamount for diGerent periods and fordiGerent interest rate is $i'en

(e)#ll of the ao'e


12/30

Q 1 In the terms Present 'alue or3uture 'alue , the term 'alue is also

+no!n asH

(a)Principal

()In'estment(c)ash Jo!

(d)&one of these

(e)#ll of a K K c


13/30

Q 12 – The relationship et!eenPresent 4alue and 3uture 4alue ( for

sin$le cash Jo! ) is H

(a)34n = P4 (1 7 r )n

()P4 = 34n ; ( 1 7 r )@

(c)P4 = 34n X ( 1 7 r ))n

(d)#ll of these

(e)&one of these


14/30

Q 1/ – If "ou !ant to recei'e Rs /at the end of 1 "ears, ho! much ha'e

"ou to in'est toda", considerin$ theinterest rate is 1 p>a ( "earl"compoundin$) ?(a)

()10//

(c)1/


15/30

Q 10 4inod is in'estin$ Rs 10 e'er""ear for the ne-t three "ears L 1

per annum> Bo! much amount !ill hee $ettin$ at the end of three "ears ?

(a)210

()/0


16/30

Q 15 4inod is in'estin$ Rs 10 e'er""ear for the ne-t three "ears L 1

per annum> 6hat is the present 'alueof the amount he is $oin$ to $et at theend of three "ears(a)210

()/0


17/30

Q 1: 4inod is in'estin$ Rs 10e'er" "ear at the e$innin$ of the "ear

for the ne-t three "ears L 1 perannum> Bo! much amount he is $oin$to $et at the end of three "ears(a)/50>0

()0/51>0

(c)/05:>

(d)0/5(e)2/2:>5


18/30

Q 1< – RaMan !ants to ta+e a loan of Rs2 for purchasin$ a frid$e> The rate

of interest on loan per annum is IfRaMan !ants to pa" ac+ the mone"alon$ !ith interest in four eAual "earl"

installments !hat should the "earl"installment(a)Rs :0

()Rs 0<

(c)Rs


19/30

Q – 1 RanMan !ants to recei'e Rs10 e'er" "ear for 10 "ears "

in'estin$ in an annuit" !hen the interestrate is


20/30

Q > #Ma" has orro!ed a sum ofRs / repa"ale in 1 "ears>

6hat monthl" repa"ment #Ma" has toma+e at 10 interest compoundedmonthl">

(a)Rs 0/0()Rs 0

(c)Rs :


21/30

Q 1 # .rm is plannin$ to purchase amachiner" !orth Rs 0 after / "ears>

The" ha'e planned to ma+e sa'in$s ri$htfrom this "ear> alculate the "earl"sa'in$s, the" are reAuired to ma+e to

purchase the machiner" if the return onin'estment is 1 >(a)121

()1/5

(c)1

(d)1152

(e)1


22/30

Q oupon rate is H

(a)%ar+et rate of return of a deenture

()The rate at !hich a ond ispurchased

(c)The total amount !hich one $ets onmaturit" of deenture

(d)Dpeci.c rate of interest at !hich aond is issued

(e)&one of the ao'e


23/30

Q 2 The 'alue of ond is

(a)3ace 'alue

()Present 'alue of cash Jo!s in future

(c)%ar+et price

(d)Issue price

(e)&one of the ao'e


24/30

Q / – 6hen the e-pected rate ofinterest is lo!er than the coupon ratea ond ma" e issued

(a)#t par

()#t discount(c)#t premium

(d)#t an" rate

(e)&one of these


25/30

Q 0 – Nero coupon onds H

(a)Oo not carr" an" interest> It is issuedat a lo!er price than its redemption'alue

()arr" a .-ed rate of interest pa"aleat the time of redemption of the ond

(c)*ears ero ris+

(d)#ll of the ao'e

(e)&one of the ao'e


26/30

Q 5 – Internal rate of return (IRR) isthe rate of ___ in &P4 eAuation at

!hich the present 'alue of cash Jo!sof a proMect eAuals its initial outla"

(a)ash Jo!

()In'estment(c)Oiscount

(d)ear

(e)&one of these


27/30

Q : – 3or a proMect the diGerenceet!een the sum of the present 'alue of

cash Jo!s of the proMect and the cashoutla"s for .nancin$ the proMect is itsH

(a)3uture 'alue()Internal rate of return

(c)&et present 4alue

(d)ash outJo!(e)&one of these


28/30

Q


29/30

Q – If the total of the present 'alueis less than the cash outla" of aproMect, then the proMect is H

(a)4iale

()&ot 'iale(c)#t no ris+

(d)&othin$ can e concluded

(e)E-tremel" 'iale


30/30

Q 2 – # proMect should e underta+enif its IRR is H

(a)ess than the cost of capital

()%ore than the cost of capital

(c)Balf of the cost of capital

(d)&o rele'ance

(e)&one of the ao'e

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Accountancy Maths