MCQ Questions for Class 11 Commerce Applied Mathematics Basics Of Financial Mathematics Quiz 10

A sum of Rs.

$100,000$ is invested for

$4$ years at

$13$ % per annum compound interest. Calculate the interest.

0%
$61000$
0%
$62000$
0%
$63000$
0%
$64000$

Explanation

$CI=P[(1+\cfrac{r}{100})^n-1]$

$\implies CI=100,000[(1+\cfrac{13}{100})^4-1]\\ \implies CI=63,047.36\approx 63,000$ .

Hence, interest

$=Rs.63000$ .

Find the rate which will amount to Rs.

$12,100$ in two years, if the principle amount was Rs

$10,000$ .

0%
$10$ %
0%
$11$ %
0%
$12$ %
0%
$13$ %

Explanation

We have,

$P=Rs.\ 10000$

$T=2\ years$

$R=?$

$A=Rs.\ 12100$

We know that

$A=P\left(1+\dfrac{R}{100}\right)^T$

So,

$12100=10000\left(1+\dfrac{R}{100}\right)^2$

$\left(1+\dfrac{R}{100}\right)^2=\dfrac{121}{100}$

$1+\dfrac{R}{100}=\dfrac{11}{10}$

$\dfrac{R}{100}=\dfrac{1}{10}$

$R=10\%$

Hence, this is the answer.

A car which costs

$\text{Rs. } 3,50,000$ depreciates by

$10$ % every year. What will be the worth of the car after three years?

0%
$\text{Rs. } 2,55,150$
0%
$\text{Rs. } 1,65,150$
0%
$\text{Rs. } 2,25,350$
0%
$\text{Rs. } 1,55,350$

Explanation

Given:

Principal,

$P =Rs.\ 350000$

Rate,

$R= 10\%$

Time,

$T=3$ years

The worth of car after

$3$ years will be,

$\begin{aligned}{}350000{\left( {1 - \frac{{10}}{{100}}} \right)^3}& = 350000 \times \frac{9}{{10}} \times \frac{9}{{10}} \times \frac{9}{{10}}\\ &= \text{Rs. }2,55,150\end{aligned}$

So, the price of the car after

$3$ years will be equal to

$\text{Rs. } 2,55,150.$

The simple interest at

$x\%$ for

$x$ years will be Rs.

$x$ on a sum of _________.

0%
Rs. $x$
0%
Rs. $100x$
0%
Rs. $\left(\displaystyle\frac{100}{x}\right)$
0%
Rs. $\left(\displaystyle\frac{100}{x^2}\right)$

Explanation

Let principal sum be

$y$

Simple Interest

$=$ Principal

$\times$ Rate

$\times$ Time

$\therefore x = y\times \dfrac{x}{100} \times x$

$\therefore y =$ Rs.

$\dfrac{100}{x}$

The value of a machine depreciates every year by

$5\%$ . If the present value of the machine be Rs.

$100,000$ , what will be its value after two years?

0%
Rs. $100,050$
0%
Rs. $90, 250$
0%
Rs. $99,250$
0%
Rs. $99,000$

Explanation

current value of Machine

$=Rs. 100,00$

After 1 year

value decreased by

$5 \%$

value of Machine is

$Rs. 95 \%$

$of$

$100,000$

$\Rightarrow \dfrac{95}{100} \times 100,000 = Rs. 95,000$

After 2 years

again the value is decreased by

$5 \%$ from previous year' s Value

Now value of Machine is

$= 95 \%$

$of$

$95,000$

$= \dfrac{95}{100} \times 95,000$

$=0.95\times 95,000$

$= Rs. 90,250$ is the value of machine at the of two years

Madhavi bought a scooter for

$Rs. 40,000$ but she does not have enough money to pay all at once. The shopkeeper says that she can divide the cost into 4 equal monthly instalments but she would have to pay

$Rs.100$ extra each month for 4 months. What is this additional amount paid by Madhavi to the shopkeeper called as and calculate the total extra amount at the end of 4 months paid by Madhavi?

0%
Profit, $Rs. 400$
0%
Principal, $Rs. 400$
0%
Loss, $Rs. 400$
0%
Interest, $Rs. 400$

Explanation

$Cost \space of \space scooter=Rs.40000$

$No. \space of \space installments=4$

$\therefore cost \space of \space each \space installments=\frac{40000}{4}$

$=10000$

$But \space 100 \space is \space paid \space extra \space in \space each \space instalment.$

$Total \space extra \space amt. \space paid=100\times4=400$

The seller costs this extra

$400$ as interest as the profit is included in

$Rs.40000$

$\therefore option \space D$

As part of the Taxation Reforms in 1991, the rates of taxation were reduced in respect of_______________.

0%
Corporate Income Tax
0%
Personal Income Tax
0%
Customs Duties
0%
All of the above

Equal sums of Rs.

$7200$ were lent to Megha and Priya at

$5$

$\%$ per annum for a period of

$4$ years and

$5$ years respectively. Find the difference of the interest paid by Megha and Priya.

0%
Rs. $140$
0%
Rs. $560$
0%
RS. $260$
0%
Rs. $360$

Explanation

Simple interest on the sum

$P$ at rate of interest

$R$ for

$N$ years is given as

$\dfrac{PNR}{100}$

$\text{Interest paid by Priya} = \dfrac{7200\times 5\times 5}{100}\\\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ =Rs\ 1800$

$\text{Interest paid by Megha} = \dfrac{7200\times 4\times 5}{100}\\\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ =Rs\ 1440$

Difference

$= 1800-1440$

$=Rs\ 360$

Hence, D is the right option.

The cost of a vehicle is Rs.

$1,75,000$ . If its value depreciates at the rate of

$20\%$ per annum, then the total depreciation after

$3$ years was _________.

0%
Rs. $86,400$
0%
Rs. $82,500$
0%
Rs. $84, 500$
0%
Rs. $85,400$

Explanation

Cost of vehicle

$= 175000$

Depreciation for first year

$= \dfrac{20}{100}\times175000=35000$

Cost of vehicle after first year

$= 175000-35000=140000$

Depreciation for second year

$= \dfrac{20}{100}\times140000 = 28000$

Cost of vehicle after second year

$= 140000-28000=112000$

Depreciation for third year

$= \dfrac{20}{100}\times112000 = 22400$

Total depreciation after

$3$ years

$= 35000+28000+22400 = 85400$

Hence, the answer is Rs.

$85,400$ .

Belose Infrastructures just issued 10 million Rs100-par bonds payable carrying 8% coupon rate and maturing in 5 years. The bond indenture requires GI to set up a sinking up to pay off the bond at the maturity date. Semi-annual payments are to be made to the fund which is expected to earn 10% per annum. Find the amount of required periodic contributions.

0%
7905155
0%
7950515
0%
8950515
0%
6950515

There is a

$60\%$ increase in an amount in

$6$ years at simple interest. What will be the compound interest on

$Rs. 12,000$ after

$3$ years at the same rate?

0%
$Rs.\ 2160$
0%
$Rs.\ 3120$
0%
$Rs.\ 3972$
0%
$Rs.\ 6240$

Explanation

For first case:

Given, Principal

$P=Rs.12,000$

Rate of interest

$=R$

Time

$T=6\ years$

If there is a

$60$ % increase in an amount in

$6$ years at simple interest, then

$SI=60\%\ of\ P$

$SI=\dfrac{60P}{100}$

Now,

$Interest = \dfrac{PTR}{100}$

$\Rightarrow \dfrac{60P}{100} = \dfrac{P\times6\times R}{100}$

$\Rightarrow \dfrac{60}{100} = \dfrac{6\times R}{100}$

$\therefore R = 10$ %

Now Compound interest on

$Rs. 12000$ for

$3$ years at the rate

$10$ % is

$C.I = P\left(1 + \dfrac{R}{100}\right)^{n} - P$

$\implies C.I = 12000 \left(1 + \dfrac{10}{100}\right)^{3} - 12000$

$\implies C.I = 12000 \left( \dfrac{11}{10}\right)^{3} - 12000$

$\implies C.I = 12000 \left(\dfrac{1331}{1000}\right) - 12000$

$\implies C.I = 15972 - 12000$

$\therefore C.I = Rs.3972$

Option C is correct.

The time required for a sum of money to double at

$5$ % annum compounded continuously is (in years)

0%
$13.5$
0%
$13.9$
0%
$13$
0%
$14.3$

Explanation

Amount after

$n$ years compounded annually

$=P(1+\dfrac {r}{100})^n$

Where,

$P$ is the principal amount and

$r$ is the interest rate per annum.

ie,

$2P=P(1+\dfrac {r}{100})^n\Rightarrow 2=(1+\dfrac {5}{100})^n=(1+\dfrac 1{20})^n$

$\Rightarrow \ln 2=n(\ln{\dfrac {21}{20}})\Rightarrow n=\dfrac {\ln 2}{\ln {21}-\ln {20}}\approx14.3$

Option D is the correct answer.

Depreciation is a charge against _______.

0%
Profit
0%
Assets
0%
Company
0%
Books of A/c

The purpose of depreciation is to _____________.

0%
Reduce fixed assets to market value each year
0%
Save income tax and wealth tax
0%
Reduce fixed assets to the standard value
0%
Allocate the cost of fixed asset

Which of the following assets is usually assumed not to depreciate?

0%
Land
0%
Building
0%
Plant
0%
Furniture

The permanent, continuing and gradual shrinkage in the book value of a fixed assets is called _______.

0%
Appreciation
0%
Depreciation
0%
Reduction
0%
Computation

_________ cost will still be incurred although a plant is shut down temporarily.

0%
Cost of raw material
0%
Advertising
0%
Depreciation
0%
Carriage

The reduction in the value of the fixed assets which can arise due to time factor is:

0%
Discount
0%
Depreciation
0%
Reduction
0%
None of these

According to Accounting Standard-6, depreciation is to be provided on the basis of _____________.

0%
Historical cost of the asset
0%
Market price of the asset
0%
Replacement cost of asset
0%
Any of the above

Depreciation is provided on _________.

0%
Current assets
0%
Liquid assets
0%
Fictitious assets
0%
Fixed assets

Which one of the following statements is correct?

0%
Depreciation is not the process of valuation of asset-it is a process of allocation of cost of asset to the period of its economic life.
0%
If the cost of machinery is more than the book value, then depreciation need not be provided.
0%
When the plant and machinery and maintained in good condition, through repairs and renewals, depreciation need not be provided.
0%
In the absence of any legal provisions, if the auditor finds that provision made for depreciation is inadequate, then he is not required to refer to it in his report.

According to ________ useful life of an asset is normally the period over which it is expected to be used.

0%
AS 3
0%
AS 6
0%
AS 2
0%
AS 4

Depreciation is allocation of _______________ amount.

0%
Increase
0%
Decrease
0%
Valuable
0%
Depreciable

According to Accounting Standard-6 which of the following is not required to be disclosed in the financial statement?

0%
Historical cost of the asset
0%
Depreciated value of the asset
0%
Accumulated depreciation
0%
Total depreciation for the period for each class of asset

Which of the following indicated the Debt-Service Coverage Ratio (DSCR) of 1.5 of a firm?

0%
The total obligations (i.e. interest plus repayment on the long term loan) of the firm are 1.5 times its PBDIT
0%
The total obligations are 1.5 times its PAT (Profit After Tax)
0%
The post-tax cash earnings are are 1.5 times its total obligations.
0%
The post-tax earnings after depreciation are 1.5 times its total obligations.
0%
The total obligations are 1.5 times than equity earnings

Depreciation is a non-cash expense.

0%
True
0%
False

Accounting Standard-6 relating to depreciation is not applicable on ____________.

0%
Building
0%
Plant and machinery
0%
Live stock
0%
Patents

Where depreciable assets are revalued, then according to Accounting Standard-6 depreciation amount should be based on____________.

0%
Historical cost and profit on revaluation should be transferred to P and L a/c
0%
Revalued amount
0%
Depreciated value of the asset
0%
Accounting Standard-6 does not specify anything in this regard

__________ means decrease in the value of asset.

0%
Depreciation
0%
Appreciation
0%
Appraisal
0%
Valuation

Accounting Standard-6 relating to depreciation is applicable to___________.

0%
Forests and plantations
0%
Mines
0%
Goodwill
0%
Land if it has a limited useful life for the enterprise

CBSE Questions for Class 11 Commerce Applied Mathematics Basics Of Financial Mathematics Quiz 10 - 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 10 - MCQExams.com

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Practice Class 11 Commerce Applied Mathematics Quiz Questions and Answers

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