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Q:

Kramer borrowed $4000 from George at an interest rate of 7% compounded semiannually. The loan is to be repaid by three payments. The first payment, $1000, is due two years after the date of the loan. The second and third payments are due three and five years, respectively, after the initial loan. Calculate the amounts of the second and third payments if the second payment is to be twice the size of the third payment.

A) 1389 B) 1359
C) 1379 D) 1339.33
 
Answer & Explanation Answer: D) 1339.33

Explanation:

Given:j=7% compounded semiannually making m=2 and i = j/m= 7%/2 = 3.5%
Let x represent the third payment. Then the second payment must be 2x.
PV1,PV2, andPV3 represent the present values of the first, second, and third payments.

Since the sum of the present values of all payments equals the original loan, then
PV1 + PV2  +PV3  =$4000 -------(1)

PV1   =FV/(1 + i)^n  =$1000/(1.035)^4=  $871.44

At first, we may be stumped as to how to proceed for
PV2 and PV3. Let’s think about the third payment of x dollars. We can compute the present value of just $1 from the x dollars

pv=1/(1.035)^10=0.7089188

PV2   =2x * 0.7089188 = 1.6270013x
PV3   =x * 0.7089188=0.7089188x
Now substitute these values into equation ➀ and solve for x.
$871.442 + 1.6270013x + 0.7089188x  =$4000

2.3359201x  =$3128.558

x=$1339.326
Kramer’s second payment will be 2($1339.326)  =$2678.65, and the third payment will be $1339.33

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

Q:

Two payments of $10,000 each must be made one year and four years from now. If money can earn 9% compounded monthly, what single payment two years from now would be equivalent to the two scheduled payments?

A) 19296 B) 19396
C) 19496 D) 19596
 
Answer & Explanation Answer: A) 19296

Explanation:

The single equivalent payment will be PV + FV.
FV = Future value of $10,000, 12 months later
 $10,000 *(1.0075)/12
 $10,938.07
PV=  Present value of $10,000, 24 months earlier
 $10,000/(1.0075)24
 $8358.31
The equivalent single payment is
$10,938.07 + $8358.31 = $19,296.38

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

Q:

Mr. and Mrs. Espedido’s property taxes, amounting to $2450, are due on July 1.What amount should the city accept if the taxes are paid eight months in advance and the city can earn 6% compounded monthly on surplus funds?

A) 2354.17 B) 2354
C) 2376 D) 2389
 
Answer & Explanation Answer: A) 2354.17

Explanation:

i=j/m

PV=  FV(1+  i)^-n 

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

Q:

There are 4 books on fairy tales, 5 novels and 3 plays. In how many ways can you arrange these so that books on fairy tales are together, novels are together and plays are together and in the order, books on fairytales, novels and plays ?

A) 12400 B) 17820
C) 17280 D) 12460
 
Answer & Explanation Answer: C) 17280

Explanation:

There are 4 books on fairy tales and they have to be put together. They can be arranged in 4! ways.

 

Similarly, there are 5 novels.They can be arranged in 5! ways.

 

And there are 3 plays.They can be arranged in 3! ways.

 

So, by the counting principle all of them together can be arranged in 4!´5!´3! ways = 17280

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Q:

Suppose 7 students are staying in a hall in a hostel and they are allotted 7 beds. Among them, Parvin does not want a bed next to Anju because Anju snores. Then, in how many ways can you allot the beds?

A) 2400 B) 6400
C) 3600 D) 7200
 
Answer & Explanation Answer: C) 3600

Explanation:

Let the beds be numbered 1 to 7.

 

Case 1 : Suppose Anju is allotted bed number 1. 

Then, Parvin cannot be allotted bed number 2. 

So Parvin can be allotted a bed in 5 ways. 

After alloting a bed to Parvin, the remaining 5 students can be allotted beds in 5! ways.

So, in this case the beds can be allotted in 5´5!ways = 600 ways.

 

Case 2 : Anju is allotted bed number 7. 

Then, Parvin cannot be allotted bed number 6 

As in Case 1, the beds can be allotted in 600 ways.

 

Case 3 : Anju is allotted one of the beds numbered 2,3,4,5 or 6. 

Parvin cannot be allotted the beds on the right hand side and left hand side of Anju’s bed. For example, if Anju is allotted bed number 2, beds numbered 1 or 3 cannot be allotted to Parvin.

Therefore, Parvin can be allotted a bed in 4 ways in all these cases.

After allotting a bed to Parvin, the other 5 can be allotted a bed in 5! ways.

Therefore, in each of these cases, the beds can be allotted in 4´ 5! = 480 ways. 

The beds can be allotted in (2x 600 + 5 x 480)ways = (1200 + 2400)ways = 3600 ways

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Q:

If you have 6 New Year greeting cards and you want to send them to 4 of your friends, in how many ways can this be done?

A) 720 B) 360
C) 240 D) 740
 
Answer & Explanation Answer: B) 360

Explanation:

We have to find number of permutations of 4 objects out of 6 objects.

 

This number is 6P4= 360

 

Therefore, cards can be sent in 360 ways.

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Q:

Suppose you can travel from a place A to a place B by 3 buses, from place B to place C by 4 buses, from place C to place D by 2 buses and from place D to place E by 3 buses. In how many ways can you travel ?from A to E?

A) 36 B) 64
C) 74 D) 72
 
Answer & Explanation Answer: D) 72

Explanation:

 

The bus fromA to B can be selected in 3 ways.

The bus from B to C can be selected in 4 ways.

The bus from C toD can be selected in 2 ways.

The bus fromD to E can be selected in 3 ways.

So, by the General Counting Principle, one can travel fromA to E in 3 x 4 x 2 x 3 ways = 72

 

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Q:

What scheme does the Kernel in Unix System V follow while choosing a swap device among the multiple swap devices?

Answer

Kernel follows Round Robin scheme choosing a swap device among the multiple swap devices in Unix System V.

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Subject: Operating Systems Exam Prep: GATE