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BUS. FINANCE EXAM

Total questions: 77

Worksheet time: 44mins

Name
Class
Date
1.

name: (a)   tapusa ni nga exam ug tarunga kay final exam ni basin mabagsak kah.

2.

A sum at simple interest of 13.5% per annum amounts to Rs. 3080 in 4 years. Find the sum

a)

1550

b)

2000

c)

1680

d)

1850

3.

Kriya deposits an amount of Rs. 65800 to obtain a simple interest at the rate 14% per annum for 4 yrs. What total amount will kriya get at the end of 4 years

a)

102648

b)

115246

c)

125578

d)

110324

4.

The effective rate of interest corresponding to a nominal rate of 22% per annum simple interest half yearly is

a)

44%

b)

23.21%

c)

46.42%

d)

22%

5.

What will be the compound interest on a sum of Rs. 50000 after 3 years at 12% p.a.

a)

80000

b)

70246.40

c)

20246.40

d)

70000

6.

The compound interest on 30000 at 7% per annum for a certain time is 4347. The time is

a)

2 years

b)

5 years

c)

3 years

d)

4 years

7.

The principal amounts which yields a compound interest of Rs. 208 in second year at 4% is

a)

5000

b)

10000

c)

130000

d)

6500

8.

What is the difference between compound interest and simple interest for 2 years on the sun of Rs. 1250 at 4%

a)

3

b)

4

c)

2

d)

8

9.

A sum amounts to 2916 in 2 years and 3149.28 in 3 years at compound interest. The sum is

a)

1500

b)

2500

c)

2000

d)

3000

10.

Raja invested Rs. 15000 at the rate of 10% per annum for 1 years compounded half yearly. Amount received by Raja at the end of the year

a)

16537.50

b)

17323.6

c)

19000.50

d)

20022.6

11.

In an examination a students scores 4 marks for every correct answer and losses 1 mark for every wrong answer. A student attempted all 200 questions and scored 200 marks. Find the number of questions he answered correctly

a)

82

b)

80

c)

68

d)

60

12.

Deepak has some hens and some goats. If the total number of animals head is 90 and the total number of animal feet is 248, what is the total number of goats deepak has

a)

32

b)

36

c)

34

d)

None of the above

13.

The time by which a sum of money would treble it self at 9% p. a C. I is

a)

14.28 years

b)

14 years

c)

13 years

d)

None of these

14.

A person bought a house paying Rs. 20,000 cash down and Rs. 5,000 at the end of each year for 25 yrs. at 5% p.a. C.I. The cash down price is

a)

70469.72

b)

90469.72

c)

50469.72

d)

80469.72

15.

Mr. Paul borrows Rs 20,000 on condition to repay it with C.I. at 5% p.a in annual installments of Rs 3000 each. The number of years for the debt to be paid off is

a)

10 Years

b)

9 Years

c)

14.2 Years

d)

8 Years

16.

A person invests Rs. 500 at the end of each year with a bank which pays interest at 10%

p. a C.I. annually. The amount standing to his credit one year after he has made his yearly investment for the 10th time is.

a)

8765.58

b)

8888.58

c)

8465.58

d)

8123.22

17.
The amount money a person expects to have in the future is called
a)
Principal
b)
Future Value
c)
Simple Interest
d)
Present Value
18.
Earning interest on interest is called
a)
Extra Interest
b)
Simple Interest
c)
Inflation Interest
d)
Compound Interest
19.
The idea that money to be paid out or received in the future is not equivalent to money paid out or received today
a)
SMART Money
b)
Time Value of Money
c)
PV/FV Money
d)
Compound Money
20.
The A in SMART Goals stands for 
a)
Acceptable
b)
Additional
c)
Attainable
d)
Accurate
21.
A fast way to estimate how long it will take your savings to double with compound interest is known as
a)
70-20-10 Rule
b)
Rule of 72
22.
You invest $475 in an account that pays 3% simple interest annually.  How much money do you have after five years? 
a)
$546.24
b)
$544.46
c)
$543.25
d)
$546.25
23.
You invest $800 in an account that pays 6% interest, compounded annually.  How much money do you have after five years?  Round your answers to the nearest cent. 
a)
$898.09
b)
$1070.58
c)
$1710.58
d)
$975.68
24.
Steady rise in the general level of prices is known as
a)
Inflation
b)
Interest
c)
Time Value of Money
d)
Principal
25.
Katie invested $6,500 in a savings account earning 12% interest compounded quarterly.  What is the future value of this investment after five years? Round your answers to the nearest cent. 
a)
$1,235,322.65
b)
$6,895.85
c)
$11,739.72
d)
$6,901.32
26.
Yolanda invests $7,300 at 6% interest compounded annually for four years.  What is the future value of this investment?
a)
$9,216.08
b)
$6,236.83
c)
$9,246.57
d)
$6,240.07
27.

The formula for compound value is :

a)

FVn = PV (1+i)

b)

FVn = PV/(1+i)

c)

FVn = PV (1+i)n

d)

FVn = (1+i)/PV

28.

What is the future value of $1000 compounded annually at 8% for five years ?

a)

$1,080

b)

$1,400

c)

$1,469

d)

$1,800

29.

Konsep nilai waktu uang adalah uang yang ada saat ini, nilainya sama dengan uang yang akan diterima masa mendatang

a)

Benar

b)

Salah

30.

Computing the future value of an amount of money for any specified time period requires knowledge of the amount of principal and the interest rate

a)

True

b)

False

31.

Nilai FVIF besarnya

a)

lebih dari 1

b)

kurang dari 1

c)

sama dengan 1

32.

The more frequently interest is compounded the greater the future value

a)

True

b)

False

33.

Present value interest factor (PVIF) are usually less than 1.0

a)

True

b)

False

34.

What is the present value of a ten year $1000 ordinary annuity discounted at 6% ?

a)

$4886

b)

$6145

c)

$7360

d)

$10000

35.

Parents want to save $100,000 for their child's education. They plan to make fifteen equal year end payments and expect to earn an 8% annual interest rate. How much will they have to invest annually to accumulate the $100,000 ?

a)

$2,542

b)

$3,683

c)

$6,139

d)

$7,285

36.

If you borrowed $120,000 to buy a hous and financed it at 10% annual interest for thirty years, what is your annual mortgage payment assuming that you make equal year end payment?

a)

$4000

b)

$3500

c)

$5336

d)

$12729

37.
A fast way to estimate how long it will take your savings to double with compound interest is known as
a)
70-20-10 Rule
b)
Rule of 72
38.
You invest $475 in an account that pays 3% simple interest annually.  How much money do you have after five years? 
a)
$546.24
b)
$544.46
c)
$543.25
d)
$546.25
39.
Yolanda invests $7,300 at 6% interest compounded annually for four years.  What is the future value of this investment?
a)
$9,216.08
b)
$6,236.83
c)
$9,246.57
d)
$6,240.07
40.

You invest $800 every year in an account that pays 6% interest, compounded annually.  How much money would this account have after 5 years? Round your answers to the nearest cent. 

a)
$898.09
b)

$4,509.67

c)

$4,500

d)

$0.67

41.
You invest $475 in an account that pays 3% simple interest annually.  How much money do you have after five years? 
a)
$546.24
b)
$544.46
c)
$543.25
d)
$546.25
42.
You invest $800 in an account that pays 6% interest, compounded annually.  How much money do you have after five years?  Round your answers to the nearest cent. 
a)
$898.09
b)
$1070.58
c)
$1710.58
d)
$975.68
43.
Katie invested $6,500 in a savings account earning 12% interest compounded quarterly.  What is the future value of this investment after five years? Round your answers to the nearest cent. 
a)
$1,235,322.65
b)
$6,895.85
c)
$11,739.72
d)
$6,901.32
44.
Yolanda invests $7,300 at 6% interest compounded annually for four years.  What is the future value of this investment?
a)
$9,216.08
b)
$6,236.83
c)
$9,246.57
d)
$6,240.07
45.

If P = Rs. 1,000, R = 5% p.a, n = 4; What is Amount and C.I. is

a)

Rs. 1,215.50, Rs. 215.50

b)

Rs. 1,125, Rs. 125

c)

Rs. 2,115, Rs. 115

d)

None

46.

Rs. 100 will become after 20 years at 5% p.a compound interest of

a)

250

b)

205

c)

165.33

d)

None

47.

The effective rate of interest corresponding to a nominal rate 3% p.a payable half yearly is

a)

3.2% P.A

b)

3.25% P.A

c)

3.0225% P.A

d)

None

48.

A machine is depreciated at the rate of 20% on reducing balance. The original cost of the machine was Rs. 1,00,000 and its ultimate scrap value was Rs. 30,000. The effective life of the machine is

a)

4.5 Years (Appr.)

b)

5.4 years (appx.)

c)

5 years (appx.)

d)

None

49.

If A = Rs. 1,000, n = 2 years, R = 6% p.a compound interest payable half-yearly, then principal (P) is

a)

688.50

b)

885

c)

800

d)

None

50.

The population of a town increases every year by 2% of the population at the beginning of that year. The number of years by which the total increase of population be 40% is

a)

7 Years

b)

10 Years

c)

17 Years (Appr.)

d)

None

51.

The difference between C.I and S.I on a certain sum of money invested for 3 years at 6% p.a is Rs. 110.16. The principle is

a)

3,000

b)

3,700

c)

12,000

d)

10,000

52.

The useful life of a machine is estimated to be 10 years and cost Rs. 10,000. Rate of depreciation is 10% p.a. The scrap value at the end of its life is

a)

3,486.78

b)

4,383

c)

3,400

d)

None

53.

The effective rate of interest corresponding a nominal rate of 7% p.a convertible quarterly is

a)

7%

b)

7.5%

c)

5%

d)

7.28%

54.

The C.I on Rs. 16,000 for 1 ½ years at 10% p.a payable half -yearly is

a)

2,222

b)

2,522

c)

2,500

d)

None

55.

The present value of an annuity of Rs. 3000 for 15 years at 4.5% p.a CI is

a)

23,809.41

b)

32,214.60

c)

32,908.41

d)

None

56.

The amount of an annuity certain of Rs. 150 for 12 years at 3.5% p.a C.I is

a)

2,190.28

b)

1,290.28

c)

2,180.28

d)

None

57.

A loan of Rs. 10,000 is to be paid back in 30 equal instalments. The amount of each installment to cover the principal and at 4% p.a CI is

a)

587.87

b)

587

c)

578.30

d)

None

58.

a = Rs. 100 n = 10, i = 5% find the FV of annuity Using the formula FV = a / {1 + i) n – 1}, FV is equal to

a)

1,258

b)

2,581

c)

1,528

d)

None

59.

If the amount of an annuity after 25 years at 5% p.a C.I is Rs. 50,000 the annuity will be

a)

1,406.90

b)

1,047.62

c)

1,146.90

d)

None

60.

Given annuity of Rs. 100 amounts to Rs. 31,37.12 at 4.5% p.a C. I. The number of years will be

a)

25 Years (Appr.)

b)

20 Years

c)

22 Years

d)

none

61.

A company borrows Rs. 10,000 on condition to repay it with compound interest at 5% p.a by annual installments of Rs. 1000 each. The number of years by which the debt will be clear is

a)

14.2 years

b)

10 years

c)

12 years

d)

None

62.

Mr. X borrowed Rs. 5,120 at 12 ½ % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid by him is

a)

2,100

b)

2,170

c)

2,000

d)

None

63.

Mr. Paul borrows Rs. 20,000 on condition to repay it with C.I. at 5% p.a in annual installments of Rs. 2000 each. The number of years for the debt to be paid off is

a)

10 Years

b)

12 Years

c)

11 Years

d)

14.2 Years

64.

The present value of annuity of Rs. 5,000 per annum for 12 years at 4% p.a C.I. annually is

a)

46,000

b)

46,850

c)

15,000

d)

46,925.40

65.

The future value of $100 received today and deposited at 6 percent for four years is

a)

$126

b)

$79

c)

$124

d)

$116

66.

The present value of $200 to be received 10 years from today, assuming an opportunity cost of 10 percent is

a)

$120

b)

can't be determined

c)

$77

d)

$300

67.

If a loan of 30,000 is to be paid in 5 annual installments with interest rate of 9% per annum, then the equal annual installment will be;

a)

can't be determined

b)

7720.63

c)

7,713.00

d)

7713.26

68.

Clara wants to buy a car worth $25,000, 3 years from now. To accumulate the

$25,000, she needs to make equal annual end-of-year deposits into an account

paying annual interest of 5 percent. How much should the annual deposit be?

a)

7,930

b)

6,490

c)

9,510

d)

6,905

69.
The amount money a person expects to have in the future is called
a)
Principal
b)
Future Value
c)
Simple Interest
d)
Present Value
70.
Earning interest on interest is called
a)
Extra Interest
b)
Simple Interest
c)
Inflation Interest
d)
Compound Interest
71.
A fast way to estimate how long it will take your savings to double with compound interest is known as
a)
70-20-10 Rule
b)
Rule of 72
72.

It is a series of equal payments at regular intervals.

a)

Interest

b)

Annuity

c)

Logic

d)

Proposition

73.

Ordinary annuity is paid or received at the _______ of the time periods.

a)

beginning

b)

end

c)

middle

d)

quarter

74.

Time‑value of money is based on the belief that a dollar that will be received at some future date is worth more than a dollar today.

a)

TRUE

b)

FALSE

75.

The annual rate of return is variously referred to as the

a)

discount rate.

b)

opportunity cost.

c)

cost of capital.

d)

all of the above.

76.

The future value of a peso amount _________ as the interest rate increases and _________ the farther in the future an initial deposit is to be received.

a)

decreases; decreases

b)

decreases; increases

c)

increases; increases

77.

(a)   is a stream of unequal periodic cash flows that reflect no particular pattern.