5% Search

Q:

Assume that money can be invested at 8% compounded quarterly,which is larger,$2500 now or $3800 in 5 years?

A) 1557.29	B) 2557.29
C) 2567	D) 2457

Answer & Explanation Answer: B) 2557.29

Explanation:

First find the present value of $3800,then compare present values:

M = p(1+i/4)^4n

Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest
Exam Prep: Bank Exams
Job Role: Bank PO

Q:

A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 12%, his annual income is:

A) 107.04	B) 648
C) 500	D) 648.60

Answer & Explanation Answer: B) 648

Explanation:

Number of shares = $\frac{4455}{8.25}$ = 540.

Face value = Rs. (540 x 10) = Rs. 5400.

Annual income = $R s . (\frac{12}{100} * 5400)$ = Rs. 648.

Report Error

View Answer Report Error Discuss

Filed Under: Stocks and Shares

Q:

Bob Kashir deposited $6000 in a 4-year certificate of deposite paying 5% compounded daily.He withdrew the money 15 months later.The passbook rate at his bank is 3.5 % compounded daily.Find his amount of interest

A) 5678	B) 4563
C) 4329	D) 6210.73

Answer & Explanation Answer: D) 6210.73

Explanation:

Bob receives 15-3 = 12 months of 3.5 % interest compounded daily

M=P(1+i/365)^365n

Report Error

View Answer Report Error Discuss

Filed Under: Quantitative Aptitude - Arithmetic Ability
Exam Prep: Bank Exams
Job Role: Bank PO

Q:

Find the compound amount if $2900 is deposited at 5% interest for 10 years if interest is compounded daily

A) 4781.13	B) 5781
C) 3456	D) 4567

Answer & Explanation Answer: A) 4781.13

Explanation:

M=P(1+i/365)^365n

Report Error

View Answer Report Error Discuss

Filed Under: Quantitative Aptitude - Arithmetic Ability
Exam Prep: Bank Exams
Job Role: Bank PO

Q:

What is the probability that a leap year selected at random, will contain 53 sundays?

A) 1/7	B) 1/3
C) 2/7	D) 4/7

Answer & Explanation Answer: C) 2/7

Explanation:

In a leap year,there are 366 days=52 weeks and 2 days

Remaining favourable 2 days can be sunday and monday or saturday and sunday

Exhaustive number of cases =7

Favourable number of cases =2

So,required probability=2/7

Report Error

View Answer Report Error Discuss

Filed Under: Probability

Q:

An amount of 5,000 is invested at a fixed rate of 8 per cent per annum. What amount will be the value of the investment in five years time, if the interest is compounded every six months?

A) 7401.22	B) 3456
C) 4567	D) 7890

Answer & Explanation Answer: A) 7401.22

Explanation:

With slight modifications, the basic formula can be made to deal with compounding at intervals other than annually.

Since the compounding is done at six-monthly intervals, 4 per cent (half of 8 per cent) will be added to the value on each occasion.

Hence we use r = 0.04. Further, there will be ten additions of interest during the five years, and so n = 10. The formula now gives:

V = P(1 + r)10 = 5,000 x (1.04)10 = 7,401.22

Thus the value in this instance will be £7,401.22.

In a case such as this, the 8 per cent is called a nominal annual

rate, and we are actually referring to 4 per cent per six months.

Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams
Job Role: Bank PO

Q:

An amount of 5,000 is invested at a fixed rate of 8 per cent per annum. What amount will be the value of the investment in five years time, if the interest is compounded annually

A) 7346.64	B) 8346
C) 3456	D) 4567

Answer & Explanation Answer: A) 7346.64

Explanation:

The only part of this type of calculation that needs particular
care is that concerning the interest rate. The formula assumes that
r is a proportion, and so, in this case:
r = 0.08
In addition, we have P = 5,000 and n = 5, so:
V = P(1 + r)5 = 5,000 x (1 + 0.08)5 = 5,000 x 1.469328 = 7,346.64
Thus the value of the investment will be 7,346.64

Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest
Exam Prep: Bank Exams
Job Role: Bank PO

Q:

A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13 $\frac{1}{2}$ . The rate of interest obtained is:

A) 13%	B) 12
C) 15%	D) 16%

Answer & Explanation Answer: C) 15%

Explanation:

Investment = Rs. [20 x (50 - 5)] = Rs. 900.

Face value = Rs. (50 x 20) = Rs. 1000.

Dividend = $R s . (\frac{27}{2} * \frac{1000}{100}) = R s . 135$

Interest obtained = $\frac{135}{900} * 100$ % = 15%

Report Error

View Answer Report Error Discuss

Filed Under: Stocks and Shares

Searching for "5%"

Quick Links