1st Year Business Maths Chapter 2 TestUNIT 2: Mathematics of Finance

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. Compound interest for same principal, same rate and sama period is always:

   1. < simple interest

   2. 

   3. > simple interest

   4. 

2. Simple interest on Rs. 20000=@ 10% in 4 years is:

   1. 2000

   2. 4000

   3. 8000

   4. 16000

3. The formula for finding rate for simple interest is:

   1. 

   2. 

   3. 

   4. 

4. If amount 1000 is borrowed for five years and paid Rs. 1250 at the rate of:

   1. 5%

   2. 10%

   3. 7%

   4. 9%

5. Simple interest "T" is:

   1. P(1+i)ⁿ

   2. Prt/(PIN)

   3. SRi

   4. P(r+1)ⁿ

6. Reverse of sum of an annuity is called:

   1. Amount

   2. Present value

   3. Annuity

   4. Perpetuity

7. If simple interest on 15000 for 3 years is Rs. 900 the rate of interest is:

   1. 4%

   2. 3%

   3. 5%

   4. 2%

8.  is formula for sum of amount of:

   1. Annuity due

   2. Ordinary annuity

   3. Simple interest

   4. Compound interest

9. Principal =Rs. 5000, interest rate = 10% period =1/2 years, interest=?

   1. 1000

   2. 500

   3. 250

   4. 100

10. If the payment starts on a certain date and continuous for indefinite period, then it is called:

    1. Ordinary annuity

    2. Annuity due

    3. Perpetuity

    4. Contingent annuity