Tag: banking

Quizzes (15) Questions (85)

Questions Related to banking

Multiple choice investement and financial planning banking compound interest comparing quantity maths

Which statement is wrong regarding Systematic Investment Plan:

  1. Advantage of long terms and short-term gains

  2. It has huge risks but high returns

  3. Redemption of units can be done

  4. Safe and transparent mode of investment
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds to investors, allowing them to invest small amounts periodically instead of lump sums. It is good for investors who don't have much financial market's understanding. It involves lesser risks and low returns because investment is done in small amounts over a period of time.

Multiple choice investement and financial planning banking compound interest comparing quantity maths

A man borrows $Rs. 6000$ at $5\% $ $C.I.$ per annum$.$ if the repays $Rs.1200$ at the end of the each year$,$ find the amount of the loan outstanding at the beginning of the third year$.$ 

  1. Rs 4155.0

  2. Rs 5555.5

  3. Rs 5452.0

  4. Rs 4452.5

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Given Principle amount $= Rs . 6000$
And$,$
Rate of interest $= r = 5\% $ compounded annually

So$,$
Interest after $1 year = 6000 × \dfrac{5}{100} × 1 = 60× 5 = Rs . 300$
Total money owed after $1 year = 6000 + 300 = 6300$

And$,$
$Rs. 1200$ paid $,$ So
Total money starting of second year $= 6300 - 1200 = Rs.5100$

And$,$
Interest after $2 year = 5100 × 5 × 1100 = 51× 5 = Rs . 255$
money owned after $2 year = 5100 + 255 = 5355$

And$,$
$Rs. 1200$ paid $,$ So
Total money outstanding starting of Third year $= 5355 - 1200$ $= Rs.4155$

Hence,
option $(A)$ is correct answer.
Multiple choice investement and financial planning banking compound interest comparing quantity maths

A man borrowed Rs.4000 at 10% per annum compound interest.At the end of each year he has repaid Rs.1000.The amount of money he still incurs after the third year is -------- .

  1. Rs.2740

  2. Rs.2104

  3. Rs.2014

  4. Rs.3400
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Year 1: 4000 * 1.1 = 4400; 4400 - 1000 = 3400. Year 2: 3400 * 1.1 = 3740; 3740 - 1000 = 2740. Year 3: 2740 * 1.1 = 3014; 3014 - 1000 = 2014.

Multiple choice investement and financial planning banking compound interest comparing quantity maths

Mutual Fund is a professionally managed investment scheme, run by an AMC i.e. Asset Management Company and they invest their own money in different schemes.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Mutual Fund is a professionally managed investment scheme, which is run by AMC. Mutual Fund is a mediator that brings together a group of people and invests 'their' money in stocks, bonds and other securities.

Multiple choice investement and financial planning banking compound interest comparing quantity maths

The price of a T.V. set worth Rs. 20,000 is to be paid in 20 instalments of Rs. 1000, each. If the rate of interest be 6% per annum, and th6 first instalment be paid at the time of purchase, then, the value of the last instalment covering the interest as well will be : (Hotel Management, 1998)

  1. Rs. 1050

  2. Rs. 2050

  3. Rs. 3000

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The question is complex and often appears in competitive exams with specific annuity formulas. Given the structure of 20 installments of 1000, the final payment must account for the remaining principal and interest.

Multiple choice investement and financial planning banking compound interest comparing quantity maths

Mr. Dua invested money in two schemes P and Q offering compound interest @ 8 p.c.p.a. and 9 p.c.p.a respectively. if the total amount of interest accrued two schemes together in two years was Rs 4818.30 and the total amount invested was Rs 27, 000, what was the amount invested in Scheme P?

  1. Rs 12, 000

  2. Rs 13,500

  3. Rs 15, 000

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let p invested Rs x Then q invested Rs $(27000-x)$
$\therefore x(1+\dfrac{8}{100})^{2}-1+(27000-x)(1+\dfrac{9}{100})^{2}-1=4818.30$
$\Rightarrow (x\times \dfrac{104}{625})+\dfrac{1881(27000-x)}{10000}= \dfrac{481830}{100}$
$\Rightarrow 1664x+1881(27000-x)=48183000$
$\Rightarrow (1881x-1664x)=50787000-48183000$
 Or $217x=2604000$
  Or $x=12000 Rs$

Multiple choice investement and financial planning banking compound interest comparing quantity maths

A family made a down payment of $75 and borrowed a set of encyclopedias that cost $400. The balance with interest was paid in 23 monthly payments of $16 each and a final payment of $9. What was the per cent of interest to the borrowed sum?

  1. 12 %

  2. 14 %

  3. 16 %

  4. 18 %
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total cost =$ 400
Down payment=$ 75
Remaining amount=$400-75=$ 325$
Balanced paid in 24 months=$23 \times 16+9=$ 377$
Difference=$377-325=$52$
The per cent of interest to the borrowed sum=$\frac{52}{325}\times 100=16$


Multiple choice investement and financial planning banking compound interest comparing quantity maths

A $500 investment and a $1,500 investment have a combined yearly return of 8.5 per cent of the total of the two investments. If $500 investment has a yearly return of 7 per cent, what per cent yearly return does the $1,500 investment have?

  1. $9$
  2. $10$
  3. $11$
  4. $11\displaystyle \frac{1}{9}$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total investment by A=$500+1500=2000$
Yearly return =8.5 % of 2000
$\Rightarrow \frac{8.5}{100}\times2000=170$
Yearly return of 500=7% of 500
$\Rightarrow \frac{7}{100}\times500=35$
Let yearly return of 1500 is x
Yearly return=x% of 1500
$\Rightarrow \frac{x}{100}\times 1500=15x$
Then according to the question
$\Rightarrow 35+15x=170$
$\Rightarrow 15x=170-35$
$\Rightarrow 15x=135$
$\Rightarrow x=\frac{135}{15}=9$