MCQ Questions for Class 11 Commerce Applied Mathematics Basics Of Financial Mathematics Quiz 1

Anitha borrowed Rs.400 from her friend at the rate of 12% p.a for 2 and half year. Find the interest and amount paid by her?

0%
Rs.140, Rs.540
0%
Rs.130, Rs.530
0%
Rs.125, Rs.525
0%
Rs.120, Rs.520

A car is valued at Rs. 500000 If sits value depreciates at 2 % p.a. What will be its value after three years?

0%
Rs. 29440
0%
Rs. 470430
0%
Rs. 470596
0%
Rs. 470596

The population of a city increases by 30% every year. If the present population is 3,38,What will the population of the city two years ago?

0%
3,00,000
0%
2,50,000
0%
3,50,000
0%
2,00,000

If the amount repaid is Rs.

$450$ and the principal is Rs.

$415$ , then interest is equal to

0%
Rs. $25$
0%
Rs. $35$
0%
Rs. $45$
0%
Rs. $50$

Explanation

Amount (A)

$= Rs. 450$
Principal (P)

$= Rs. 415$

$A=I+P$

$I = A - P = 450 - 415 = Rs. 35$

_________ is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

0%
simple interest
0%
compound interest
0%
complex interest
0%
annual interest

Explanation

Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

$Op.B$

Identify in which type of interest rate is applied to the original principal and any accumulated interest?

0%
simple interest
0%
compound interest
0%
complex interest
0%
annual interest

Annuity, where the payments start after specified no. of periods, is known as

0%
Immediate Annuity
0%
Deferred annuity
0%
Contingent annuity
0%
Perpetual annuity

__________ is calculated on both the amount borrowed and any previous interest.

0%
simple interest
0%
annual interest
0%
complex interest
0%
compound interest

If the account statement states that the interest is compounded annually, then

$n =$ ?

0%
$1$
0%
$2$
0%
$4$
0%
$8$

Explanation

If the account statement states that the interest is compounded annually then

$n = 1$ .
Annually means

$1$ year.

The principal is Rs.

$1000$ , so if you pay off Rs.

$300$ , the remaining Rs.

$700$ left to repay is also called the

0%
Interest
0%
Rate
0%
Principle
0%
Amount

Explanation

If Rs.

$300$ of Rs.

$1000$ principal is paid off, the remaining Rs.

$700$ left to repay is the new Principal.

It is also called the principal.

Find the principle if

$S.I$ is

$Rs. 31.50$ , time period is 1

$\displaystyle \frac{1}{4}$ years and rate percent per annum is 5

$\displaystyle \frac{1}{4}$ %.

0%
$Rs. 460$
0%
$Rs. 430$
0%
$Rs. 480$
0%
$Rs. 4800$

Explanation

$P = \displaystyle \frac{100 \times S.I}{T \times R}$

$= \displaystyle \frac{100 \times 31.50}{\displaystyle \frac{5}{4} \times \frac{21}{4}} = Rs.\, 480$

The correct relationship is

0%
$A+C.I=P$
0%
$C.I-P=A$
0%
$C.I=A-P$
0%
None of these

Explanation

$\text{Compound Interest} (C.I) = \text{Amount} (A) - \text{Principal} (P)$

$C.I = A - P$

If the amount is

$\text{Rs. } 500$ and the interest is

$\text{Rs. }100,$ then principal is

0%
$\text{Rs.}\ 100$
0%
$\text{Rs.}\ 400$
0%
$\text{Rs.}\ 600$
0%
none of these

Explanation

$Principal \ = A - I = 500 - 100 = Rs. 400$

Simple interest on Rs.2000 for 4 years is Rs.Percent rate of interest is

0%
$\displaystyle\frac{2000\times 100}{400\times 4}$
0%
$\displaystyle\frac{400\times 4}{2000\times 100}$
0%
$\displaystyle\frac{400\times 100}{2000\times 4}$
0%
None of these

Explanation

Principal = Rs 2000
Time = 4 years
Interest = Rs 400

Let Rate of Interest=

$R$
Now,

$Interest = \frac{Principal \times Rate \times Time}{100}$

$400 = \frac{2000\times R\times 4}{100}$

$R = \frac{400 \times 100}{2000 \times 4}$

Which of the following is an example of annuity contingent ?

0%
Car Loan
0%
House Loan
0%
Daughter's Marriage
0%
All of the above

Explanation

$\Rightarrow$

$Daughter's\,\,Marriage$ is an example of annuity contingent.

$\Rightarrow$ Annuity contingent is an annuity arrangement in which the beneficiary does not begin receiving payments until a specified event occurs.

$\Rightarrow$ A contingent annuity may be set up to begin sending payments to a beneficiary upon the death of another individual who wishes to ensure financial stability for the beneficiary, or upon retirement or disablement of the beneficiary.

$\Rightarrow$ Car loan and House loan is not an example of annuity contingent, it's an example of annuity certain.

A sum of money lent by Hari at simple interest becomes double of itself in 8 years. Then the sum will triple itself in

0%
16 years
0%
15 years
0%
20 years
0%
24 years

Explanation

Sum of money be P
Amount will be=2P
time=8yrs
rate=r%
Simple interest=amount -principal
=(2P-P)=P

$P=\frac { P\times 8\times r }{ 100 }$

$8r=100$

$r=12.5$ %

Now,
           Principal=P
           Amount=3P
      Therefore interest=3P-P=2P

$2P=\frac { P\times T\times 12.5 }{ 100 }$

$12.5T=200$

$T=\frac { 200 }{ 12.5 } =16years$
Sum will triple itself in 16 years

If the simple interest on a certain sum of money @ 4% for 5 years is Rs. 800, find the sum.

0%
Rs. 4000
0%
Rs. 9000
0%
Rs. 12000
0%
None of the above

Explanation

$\textbf{Step-1: Apply relevant formula of Simple interest & simplify.}$

$\text{We have,}$

$\text{Rate = 4%, Time = 5 years & Simple interest = Rs. 800}\\$

$\displaystyle \therefore P=\dfrac { SI\times 100 }{ RT } =\dfrac { 800\times 100 }{ 4\times 5 } =Rs.4000$

$[\because\boldsymbol{\displaystyle\textbf{Simple Interest = } \dfrac { PRT }{ 100 } ]}$

$\textbf{Hence, answer is Rs. 4000}$

A certain sum of money

$Q$ was deposited for

$5$ years and

$4$ months at

$4.5\%$ simple interest and amounted to

$Rs\ 248.$ Then the value of

$Q$ is

0%
$Rs\ 200$
0%
$Rs\ 210$
0%
$Rs\ 220$
0%
$Rs\ 240$

Explanation

When the principal is

$P$ , the rate of interest is

$R$ per annum and the time period is

$T$ years then the simple interest is given by,

$SI=\dfrac { P\times T\times R }{ 100 }$

Given:

$P=Q$

$R=4.5\%$

$T=5$ years

$4$ months

$=5\dfrac { 4 }{ 12 }$

$=5\dfrac { 1 }{ 3 }$

$=\dfrac { 16 }{ 3 }$

So,

$SI=\dfrac { Q\times 16\times 4.5 }{ 100\times 3 }$

$=\dfrac { 24Q }{ 100 }$

Principal

$+$ Interest

$=$ Amount

$\Rightarrow Q+\dfrac { 24Q }{ 100 } =248$

$\Rightarrow 100Q+24Q=24800$

$\Rightarrow 124Q=24800$

$\Rightarrow Q=Rs\ 200$

Which term is called for the amount of money paid for a loan or an investment?

0%
rate
0%
time
0%
principal
0%
interest

The money borrowed or lent out for a certain period is called

0%
Interest
0%
Principal
0%
Time Period
0%
None of the above

Micheal deposits

$Rs.\ 5400$ and got back an amount of

$Rs.\ 6000$ after a year. What is the principal amount?

0%
$Rs.\ 6000$
0%
$Rs.\ 600$
0%
$Rs.\ 5400$
0%
$Rs.\ 400$

Explanation

The principal is the amount of money borrowed or invested. So, in this case, the principal amount is

$Rs.\ 5400$ .

John borrows Rs.

$2000$ from the bank. The Principal of the loan is _____.

0%
Rs. $1000$
0%
Rs. $2000$
0%
Rs. $3000$
0%
Rs. $4000$

Explanation

Principal amount is the original amount of money, the amount before any interest is applied.
So, the Principal of the John's loan is Rs.

$2000$ .

Identify which amount is the original amount of money, the amount before any interest is applied?

0%
interest
0%
time period
0%
loan
0%
principal

The principal is

$Rs. 1000$ , so if you pay off

$Rs. 500$ , the remaining

$Rs. 500$ left to repay is also called the

0%
interest
0%
loan
0%
principal
0%
rate

Explanation

The principal is

$Rs.1000$ , so if you pay off

$Rs.500$ , the remaining

$Rs.500$ left to repay is also called the principal.
Principal amount is the original amount of money, the amount before any interest is applied.

A rate which is charged or paid for the use of money is know as

0%
interest rate
0%
principal
0%
interest
0%
amount

Sam invested a certain amount of money and got back an amount of Rs.

$5000$ . If the bank paid an interest of Rs.

$1700$ , find the amount Sam invested.

0%
$5000$
0%
$1300$
0%
$3300$
0%
$1700$

Explanation

Amount

$=$ Rs.

$5000$
Simple interest

$=$ Rs.

$1700$
Principal

$=$ Amount

$-$ simple interest

$= 5000 - 1700$
Principal

$= 3300$
Therefore, Sam invested Rs.

$3300$ .

________ is most commonly used to refer to the amount borrowed or the amount still owed on a loan, separate from interest.

0%
interest
0%
loan
0%
principal
0%
rate

If payment of security is paid as

$$100$ at end of year for three years, it is an example of

0%
fixed payment investment
0%
lump sum amount
0%
fixed interval investment
0%
annuity

Security payment type in which payments are made at equal intervals of time and every payment amount is same is classified as _______________.

0%
fixed interval investment
0%
fixed payment investment
0%
annuity
0%
lump sum amount

Explanation

An annuity is a series of equal payments in equal time periods. Usually, the time period is

$1$ year, which is why it is called an annuity, but the time period can be shorter, or even longer. These equal payments are called the periodic rent. The amount of the annuity is the sum of all payments.
such security payment type in which payments are made at equal intervals of time and every payment amount is same is classified as annuity.

Which option is an example of interest on interest?

0%
simple interest
0%
compound interest
0%
complex interest
0%
annual interest

CBSE Questions for Class 11 Commerce Applied Mathematics Basics Of Financial Mathematics Quiz 1 - MCQExams.com

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Practice Class 11 Commerce Applied Mathematics Quiz Questions and Answers

CBSE Questions for Class 11 Commerce Applied Mathematics Basics Of Financial Mathematics Quiz 1 - MCQExams.com

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Practice Class 11 Commerce Applied Mathematics Quiz Questions and Answers

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