Tag: banking

Quizzes (15) Questions (85)

Questions Related to banking

Multiple choice installments banking business and commercial activities economics maths

The depreciation on an asset purchased through hire purchase should be:

  1. Based on the total cost including interest

  2. Based on the cost price of the asset only

  3. Should be straight line only

  4. No depreciation should be provide until the final payment is made
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The depreciation on an asset purchased through hire purchase should be based on the cost price of the asset only.

Multiple choice installments banking business and commercial activities economics maths

When does the asset legally belong to the purchaser under a hire purchase agreement?

  1. Final instalment is paid and purchaser agrees to a legal option to buy the asset

  2. Purchaser agrees to legal option to buy the asset

  3. Final instalment is paid

  4. On date of first instalment in repayment
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When, final installment is paid and purchased agrees to a legal option to but the asset, then the asset legally belong to the purchaser under a high purchase agreement.

Multiple choice installments banking business and commercial activities economics maths

In hire purchase, ownership of the property is transferred to the hirer on the payment of the ______ instalment.

  1. first

  2. second

  3. third

  4. last
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In hire purchase, ownership of the property is transferred to the hire on the payment of the last installment 

Multiple choice installments banking business and commercial activities economics maths

On the balance sheet of a company, the value of the asset bought through hire purchase will appear as:

  1. Cost less depreciation to date less amount owing on hire purchase less interest owing

  2. Cost less amounts owing on hire purchase

  3. Cost less depreciation to date less amount owing on hire purchase

  4. Cost less depreciation to date
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The value of the asset bought through hire purchase will appear as cost less depreciation to date on the balance sheet of a company.

Multiple choice installments banking business and commercial activities economics maths

The company offers a heater whose cost price is Rs. $9400$ at a monthly E.M.I for $24$ months. The interest charged is $6\%$. What is the monthly EMI to be paid by the customer?

  1. Rs. $340$
  2. Rs. $512$
  3. Rs. $439$
  4. Rs. $604$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

$\Rightarrow$   We know, $EMI=\dfrac{Cost\, price+Interest}{Months}$


$\Rightarrow$   $T=24\,months=2\,years,\, R=6\%\,$ and $P=Rs.9400$.


$\Rightarrow$   $Interest = \dfrac{P\times R\times T}{100}=\dfrac{9400\times 6\times 2}{100}$

$\Rightarrow$   $Interest = Rs.1128.$


$\Rightarrow$   $EMI=\dfrac{9400+1128}{24}=Rs.438.66\approx Rs.439.$

Multiple choice installments banking business and commercial activities economics maths

Following are the details for purchasing a mobile phone:
Selling Price $=$ Rs. $15,600$
Initial Payment $=25\%$
Rate of Interest $= 10\%$
Processing Fee $=2\%$
Period $=12$ months
Calculate the total amount (in Rs.) that will be paid by the customer for the mobile phone.

  1. $15600$
  2. $17082$
  3. $16390$
  4. $16770$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

$\Rightarrow$  Selling price of mobile phone is $Rs.15,600.$

$\Rightarrow$  Initial payment = $25\%\,\, of Rs.15,600.$
$\Rightarrow$  Initial payment = $\dfrac{25}{100}\times 15600=Rs.3900.$
$\Rightarrow$  Loan amount = Selling price - Initial payment.
$\Rightarrow$  Loan amount = $Rs.15,600-Rs.3,900=Rs.11,700.$

$\Rightarrow$  $Interest=\dfrac{11700\times 10\times 1}{100}=Rs.1170.$

$\Rightarrow$  Processing fee = $2\%\,\,of\,Rs.15600.$
$\Rightarrow$  Processing fee = $\dfrac{2}{100}\times 15600=Rs.312.$
$\Rightarrow$  Total amount paid = Selling price + Interest + Processing fee.
$\Rightarrow$  Toatal amount paid = $Rs.15600+Rs.1170+Rs.312=Rs.17082.$