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Q:

A retirement benefit of $12,000 is to be paid every 6 months for 25 years at interest rate of 7% compounded semi-annually. Find

(a) the present value to fund the end-of-period retirement benefit.

(b) the end-of-period semi-annual payment needed to accumulate the value in part (a) assuming regular investments for 30 years in an account yielding 8% compounded semi-annually

A) 245678	B) 234689
C) 281468.06	D) 234578

Answer & Explanation Answer: C) 281468.06

Explanation:

R=S[i/(1+i)^n-1]

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Q:

15 semiannual payments are made into a sinking fund at 7% compounded semiannually so that $4850 will be present. Find the amount of each payment rounded to the nearest cent

A) 251.35	B) 245.45
C) 235.87	D) 251

Answer & Explanation Answer: A) 251.35

Explanation:

R=S[i/(1+i)^n-1]

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Q:

Sharon Stone deposits $500 at the beginning of each 3 months in an account earning 10% compounded quarterly. Determine how much money she has after 25 years

A) 22681.19	B) 23456
C) 44577	D) 25685

Answer & Explanation Answer: A) 22681.19

Explanation:

S=R[(1+i)^n-1)/i]

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Q:

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

A) 2	B) 3
C) 4	D) 5

Answer & Explanation Answer: A) 2

Explanation:

Amount = Rs. (30000 + 4347) = Rs. 34347

(1+7/100)^n=34347

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Q:

What is the difference between the compound interests on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?

A) 2.04	B) 3.04
C) 4.04	D) 5.04

Answer & Explanation Answer: A) 2.04

Explanation:

C.I. when interest
compounded yearly=rs.[5000*(1+4/100)(1+1/2*4/100)]

= Rs. 5304.

C.I. when interest is
compounded half-yearly=rs.5000(1+2/100)^3

= Rs. 5306.04
Difference = Rs. (5306.04 - 5304) = Rs. 2.04

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Q:

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:

A) 625	B) 635
C) 645	D) 655

Answer & Explanation Answer: A) 625

Explanation:

Let the sum be Rs. x. Then

C.I=x[1+4/100)^2-x]=[626/675x-x]

S.I=x^2/25

C.I-S.I=1

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Q:

In a lottery, there are 10 prizes and 25 blanks. A lottery is drawn at random. What is the probability of getting a prize ?

A) 1/7	B) 2/7
C) 3/7	D) 2/5

Answer & Explanation Answer: B) 2/7

Explanation:

P(getting prize) = 10/ (10 + 25) =2/7

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Filed Under: Probability

Q:

The value of $(\frac{1}{\log_{3} 60} + \frac{1}{\log_{4} 60} + \frac{1}{\log_{5} 60}) i s$

A) 0	B) 1
C) 5	D) 60

Answer & Explanation Answer: B) 1

Explanation:

=> $\log_{60} (3 * 4 * 5)$

=> $\log_{60} (60)$

= 1

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Filed Under: Logarithms
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