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Q:

The office building needs repairing just as urgently as it needs internal as well as external painting

Assumptions:

1. Efficiency of people working in the office cannot be improved unless office building is reapaire

2. Repairing and painting of office building require funds

A) Only 1 is true B) Only 2 is true
C) Either 1 or 2 is true D) Neither 1 nor 2 is true
 
Answer & Explanation Answer: D) Neither 1 nor 2 is true

Explanation:

Nothing can be deduced regarding the effect of reapirs of office building on efficency of workers,or the requirement of funds for repairs,from the given statement.So,neither 1 nor 2 is true

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Filed Under: Statement and Assumptions
Exam Prep: GRE

Q:

Does the minimum spanning tree of a graph give the shortest distance between any 2 specified nodes?

A) Yes B) No
C) May be Yes or No D) None
 
Answer & Explanation Answer: B) No

Explanation:

No.Minimal spanning tree assures that the total weight of the tree is kept at its minimum. But it doesn’t mean that the distance between any two nodes involved in the minimum-spanning tree is minimum.

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Filed Under: Database
Job Role: Database Administration

Q:

What is the SI on Rs.7500/- at the rate of 10% per annum for 5 years?

A) 3750 B) 2750
C) 1750 D) 750
 
Answer & Explanation Answer: A) 3750

Explanation:

S.I=PNR/100

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

Q:

What is the SI on Rs.2500/- at the rate of 12% per annum for 8 years?

A) 2200 B) 2300
C) 2400 D) 2500
 
Answer & Explanation Answer: C) 2400

Explanation:

S.I=PNR/100

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

Q:

Payments of $2000 and $1000 were originally scheduled to be paid one year and five years, respectively, from today. They are to be replaced by a $1500 payment due four years from today, and another payment due two years from today. The replacement stream must be economically equivalent to the scheduled stream. What is the unknown payment, if money can earn 7% compounded semiannually?

A) 1548 B) 1348
C) 1648 D) 1748
 
Answer & Explanation Answer: C) 1648

Explanation:

FV1 = Future value of $2000, 1 year later
= PV (1+  i)^n

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

Q:

If the rate of inflation for the next 20 years is 2.5% per year, what annual income will be needed 20 years from now to have the same purchasing power as a $30,000 annual income today?

A) 39158 B) 49158
C) 59158 D) 69158
 
Answer & Explanation Answer: B) 49158

Explanation:

i=j/m

FV = PV(1+  i)^n

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

Q:

A five-year promissory note with a face value of $3500, bearing interest at 11%  compounded semiannually, was sold 21 months after its issue date to yield the buyer 10% compounded quarterly.What amount was paid for the note

A) 4336.93 B) 5336
C) 6336 D) 7336
 
Answer & Explanation Answer: A) 4336.93

Explanation:

i=j/m

Maturity value = PV(1 + i)^n

Term = 5 years - 21 months=  3.25 years

Price paid = FV(1+ i )^-n

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

Q:

$10,000 face value strip bond has 15 years remaining until maturity. If the prevailing market rate of return is 6.5% compounded semiannually, what is the fair market value of the strip bond?

A) 1710.29 B) 2710.29
C) 3710.29 D) 4710.29
 
Answer & Explanation Answer: C) 3710.29

Explanation:

i=j/m

n =m(Term) = 2(15.5)  =31

Fair market value  Present value of the face value

 =FV(1+  i)^-n

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