MCQs of Cash Flow, Interest and Equivalence (Economics for Engineers - 3140911)

Economics for Engineers (3140911) MCQs

MCQs of Cash Flow, Interest and Equivalence

Showing 31 to 40 out of 85 Questions

31.

In a typical loan amortization schedule, the total amount of money paid each period

(a)	Increases with each payment
(b)	Decreases with each payment
(c)	Remains constant with each payment
(d)	Cannot be determined without more information

32.

Time value of money indicates that

(a)	A unit of money obtained today is worth more than a unit of money obtained in future
(b)	A unit of money obtained today is worth less than a unit of money obtained in future
(c)	There is no difference in the value of money obtained today and tomorrow
(d)	None of above

33.

Time value of money supports the comparison of cash flows recorded at different time period by

(a)	Discounting all cash flows to a common point of time
(b)	Compounding all cash flows to a common point of time
(c)	Either (a) or (b)
(d)	None of above

34.

What will be the simple interest on Rs. 5200 for 2 years at 6% per annum?

(a)	Rs. 450
(b)	Rs. 524
(c)	Rs. 600
(d)	Rs. 624

35.

Rs. 1200 is lent out at 5% per annum simple interest for 3 years. what will be the amount after 3 years?

(a)	Rs. 1380
(b)	Rs. 1290
(c)	Rs. 1470
(d)	Rs. 1240

36.

Interest obtained on a sum of Rs. 5000 for 3 years is Rs. 1500. What is percentage rate of interest?

(a)	8%
(b)	9%
(c)	10%
(d)	11%

37.

Rs. 2100 is lent at compound interest of 5% per annum for 2 years. What will be the amount after two years?

(a)	Rs. 2300
(b)	Rs. 2315.25
(c)	Rs. 2310
(d)	Rs. 2320

38.

What will be the difference between the simple interest and the compound interest at 5% per annum for 2 years on principal of Rs. 2000?

(a)	Rs. 5
(b)	Rs. 10.5
(c)	Rs. 4.5
(d)	Rs. 5.5

39.

What is rate of interest if amount after 2 years simple interest on capital of Rs. 1200 is Rs. 1440?

(a)	8%
(b)	9%
(c)	10%
(d)	11%

40.

What is the difference between the simple interest on a principal of Rs. 500 being calculated at 5% per annum for 3 years and 4% per annum for 4 years?

(a)	Rs. 5
(b)	Rs. 10
(c)	Rs. 20
(d)	Rs. 40

Showing 31 to 40 out of 85 Questions