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Ravindra needs Rs. 25,000 for her daughter's admission in playgroup 2 years down the line. Currently the fixed deposit interest being paid by ABC Bank is 8% compounded annually. If Ravindra wishes to invest in this fixed deposit, then how much should he invest today so that he gets Rs. 25,000 on maturity?

Rs.23148

Rs.21433

Rs.19845

Rs.20000

David want to purchase a house with a home loan. Which of the below statement is correct with regards to home loan interest rates?

In a rising interest rate scenario floating rate home loan will be better for David

In a falling interest rate scenario floating rate home loan will be better for David.

Rise or fall in interest rate does not make any difference to floating rate home loans. So David can go for a floating rate home loan irrespective of the direction of interest rates.

In a falling interest rate scenario fixed rate home loan will be better for David.

Maninder is looking to invest in a fixed deposit. From the investor's point of view which of the below will be the best option for Mainder for investing in a fixed deposit?

Investment option where the bank does quarterly compounding of interest payable on the fixed deposit

Investment option where the bank does half yearly compounding of interest payable on the fixed deposit

Investment option where the bank does yearly compounding of interest payable on the fixed deposit

Investment option where the bank pays simple interest on the fixed deposit

Shraddha's account, by mistake is debited for Rs. 4500, instead of Rs. 5400 and Kapil's account is credited for Rs. 4500, instead of Rs. 5400. This is an example of ____________.

Error of principle

Error of omission

Compensating error

Duplicate error

_________ is the fall in the purchasing power of money.

Inflation

Deflation

Devaluation

Appreciation

Radha decides to deposit Rs. 10000 each year in a bank for the next 5 years. The bank accepts the deposit at the rate of 9% p.a. Radha wants to know what would be the value of these yearly deposits at the maturity?

60457

59847

59347

60127

Sukanya is considering a project with an investment of Rs. 100000. The expected inflows are Rs. 40000 for year 1, Rs. 45000 for year 2, Rs. 48000 for year 3. Sukanya expects atleast 10% return on the investment. Advise Sukanya, whether she should accept the project or not.

Sukanya should accept the project as the NPV of the project is 9671

Sukanya should accept the project as the NPV of the project is 9690

Sukanya should accept the project as the NPV of the project is 9616

Sukanya should accept the project as the NPV of the project is 9657

Swati is a 23 year old individual working as an Assistant Manager with a retail apparel company. She wishes to go for a fashion designing course 2 years down the line to enhance her knowledge and skills further. She wishes to accumulate Rs. 25,000 two years down the line. Swati deposits Rs. 11,000 for 2 years @ 9% compounded per annum in a fixed deposit with ABC Bank. One year later she deposits another Rs. 11,000 for 1 year @ 9% compounded per annum in another fixed deposit with ABC Bank. How much money will Swati have end the end of 2 years and will she be able to enroll for her fashion designing course?

Swati will have Rs. 25,059 from the 2 FDs at the end of 2 years and she will be able to enrol for the fashion designing course

Swati will have Rs. 25,240 from the 2 FDs at the end of 2 years and she will be able to enrol for the fashion designing course

Swati will have Rs. 25,423 from the 2 FDs at the end of 2 years and she will be able to enrol for the fashion designing course

Swati will have Rs. 25,612 from the 2 FDs at the end of 2 years and she will be able to enrol for the fashion designing course

Manoj is a 24 year old individual working with a multinational BPO. He wishes to purchase a bike 2 years from now. The bike is expected to cost Rs. 50,000 two years from now. Manoj has Rs. 42,000 at the moment. He plans to put this money in a fixed deposit for 2 years @ 9.25% interest compounded annually with ABC Bank. Analyse and find out if Manoj will have Rs. 50,000 on the maturity of the fixed deposit and therefore whether he will be able to buy his dream bike or not.

Manoj will not be able to buy the bike as he will have only 49,000 on maturity, unless he decides to put the remaining Rs. 1000 from his pocket

Manoj will not be able to buy the bike as he will have only 49,900 on maturity, unless he decides to put the remaining Rs. 100 from his pocket

Manoj will be able to buy the bike as he will have 50,129 on maturity. So he will be further left with Rs. 129 even after buying the bike.

Manoj will be able to buy the bike as he will have 51,258 on maturity. So he will be further left with Rs. 1,1258 even after buying the bike.

Ramesh deposited Rs. 10,000 with ABC Bank for 2 years @ 10% compounded per annum. In this case how much is the additional interest that Ramesh will earn due to compound interest as compared to simple interest?

Rs. 1200

Rs. 200

Rs. 100

Rs. 1100

Which of the below statement is correct with regards to the interest charged on money borrowed?

The interest is proportionate to the amount of money borrowed and not the period of time for which the borrowed money is kept.

The interest is proportionate to the period of time for which the borrowed money is kept and not to the amount of money borrowed.

The interest is neither proportionate to the amount of money borrowed nor to the period of time for which the borrowed money is kept.

The interest is proportionate to the amount of money borrowed and to the period of time for which the borrowed money is kept.

Identify which of the below statement is correct with regards to simple interest and compound interest.

In case of simple interest, additional interest is paid on interest already earned during the term of the deposit.

In case of compound interest, no additional interest is paid on interest already earned during the term of the deposit.

Compound interest is interest on the principal that goes on reducing for the period of deposit.

Simple interest is interest on the principal for the period of deposit.

If Rs. 10,000 is compounded on a half yearly basis for 2 years @10% p.a. how much will be the amount at the end of 2 years?

Rs. 12128

Rs. 12155

Rs. 12173

Rs. 12194

Which of the below statement is correct with regards to inflation?

Due to inflation a given amount of money the same amount of goods in the future than it will now.

Due to inflation a given amount of money buys more goods in the future than it will now.

Due to inflation a given amount of money buys few goods in the future than it will now.

All of the above

You inherit Rs. 100000 from your grandfather. You wish to save it and there choose to deposit this in an FD for 2 years at 10%. What is the FV at the end of 2 yrs

123000

141000

161000

121000

Rs.23148

Rs.21433

Rs.19845

Rs.20000

David want to purchase a house with a home loan. Which of the below statement is correct with regards to home loan interest rates?

In a rising interest rate scenario floating rate home loan will be better for David

In a falling interest rate scenario floating rate home loan will be better for David.

Rise or fall in interest rate does not make any difference to floating rate home loans. So David can go for a floating rate home loan irrespective of the direction of interest rates.

In a falling interest rate scenario fixed rate home loan will be better for David.

Maninder is looking to invest in a fixed deposit. From the investor's point of view which of the below will be the best option for Mainder for investing in a fixed deposit?

Investment option where the bank does quarterly compounding of interest payable on the fixed deposit

Investment option where the bank does half yearly compounding of interest payable on the fixed deposit

Investment option where the bank does yearly compounding of interest payable on the fixed deposit

Investment option where the bank pays simple interest on the fixed deposit

Shraddha's account, by mistake is debited for Rs. 4500, instead of Rs. 5400 and Kapil's account is credited for Rs. 4500, instead of Rs. 5400. This is an example of ____________.

Error of principle

Error of omission

Compensating error

Duplicate error

_________ is the fall in the purchasing power of money.

Inflation

Deflation

Devaluation

Appreciation

Radha decides to deposit Rs. 10000 each year in a bank for the next 5 years. The bank accepts the deposit at the rate of 9% p.a. Radha wants to know what would be the value of these yearly deposits at the maturity?

60457

59847

59347

60127

Sukanya is considering a project with an investment of Rs. 100000. The expected inflows are Rs. 40000 for year 1, Rs. 45000 for year 2, Rs. 48000 for year 3. Sukanya expects atleast 10% return on the investment. Advise Sukanya, whether she should accept the project or not.

Sukanya should accept the project as the NPV of the project is 9671

Sukanya should accept the project as the NPV of the project is 9690

Sukanya should accept the project as the NPV of the project is 9616

Sukanya should accept the project as the NPV of the project is 9657

Swati is a 23 year old individual working as an Assistant Manager with a retail apparel company. She wishes to go for a fashion designing course 2 years down the line to enhance her knowledge and skills further. She wishes to accumulate Rs. 25,000 two years down the line. Swati deposits Rs. 11,000 for 2 years @ 9% compounded per annum in a fixed deposit with ABC Bank. One year later she deposits another Rs. 11,000 for 1 year @ 9% compounded per annum in another fixed deposit with ABC Bank. How much money will Swati have end the end of 2 years and will she be able to enroll for her fashion designing course?

Swati will have Rs. 25,059 from the 2 FDs at the end of 2 years and she will be able to enrol for the fashion designing course

Swati will have Rs. 25,240 from the 2 FDs at the end of 2 years and she will be able to enrol for the fashion designing course

Swati will have Rs. 25,423 from the 2 FDs at the end of 2 years and she will be able to enrol for the fashion designing course

Swati will have Rs. 25,612 from the 2 FDs at the end of 2 years and she will be able to enrol for the fashion designing course

Manoj is a 24 year old individual working with a multinational BPO. He wishes to purchase a bike 2 years from now. The bike is expected to cost Rs. 50,000 two years from now. Manoj has Rs. 42,000 at the moment. He plans to put this money in a fixed deposit for 2 years @ 9.25% interest compounded annually with ABC Bank. Analyse and find out if Manoj will have Rs. 50,000 on the maturity of the fixed deposit and therefore whether he will be able to buy his dream bike or not.

Manoj will not be able to buy the bike as he will have only 49,000 on maturity, unless he decides to put the remaining Rs. 1000 from his pocket

Manoj will not be able to buy the bike as he will have only 49,900 on maturity, unless he decides to put the remaining Rs. 100 from his pocket

Manoj will be able to buy the bike as he will have 50,129 on maturity. So he will be further left with Rs. 129 even after buying the bike.

Manoj will be able to buy the bike as he will have 51,258 on maturity. So he will be further left with Rs. 1,1258 even after buying the bike.

Ramesh deposited Rs. 10,000 with ABC Bank for 2 years @ 10% compounded per annum. In this case how much is the additional interest that Ramesh will earn due to compound interest as compared to simple interest?

Rs. 1200

Rs. 200

Rs. 100

Rs. 1100

Which of the below statement is correct with regards to the interest charged on money borrowed?

The interest is proportionate to the amount of money borrowed and not the period of time for which the borrowed money is kept.

The interest is proportionate to the period of time for which the borrowed money is kept and not to the amount of money borrowed.

The interest is neither proportionate to the amount of money borrowed nor to the period of time for which the borrowed money is kept.

The interest is proportionate to the amount of money borrowed and to the period of time for which the borrowed money is kept.

Identify which of the below statement is correct with regards to simple interest and compound interest.

In case of simple interest, additional interest is paid on interest already earned during the term of the deposit.

In case of compound interest, no additional interest is paid on interest already earned during the term of the deposit.

Compound interest is interest on the principal that goes on reducing for the period of deposit.

Simple interest is interest on the principal for the period of deposit.

If Rs. 10,000 is compounded on a half yearly basis for 2 years @10% p.a. how much will be the amount at the end of 2 years?

Rs. 12128

Rs. 12155

Rs. 12173

Rs. 12194

Which of the below statement is correct with regards to inflation?

Due to inflation a given amount of money the same amount of goods in the future than it will now.

Due to inflation a given amount of money buys more goods in the future than it will now.

Due to inflation a given amount of money buys few goods in the future than it will now.

All of the above

You inherit Rs. 100000 from your grandfather. You wish to save it and there choose to deposit this in an FD for 2 years at 10%. What is the FV at the end of 2 yrs

123000

141000

161000

121000

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