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Multiple choice questions: In annuity calculations, the interest is usually taken as ______

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प्रश्न

Multiple choice questions:  

In annuity calculations, the interest is usually taken as ______

विकल्प

  • simple interest per annum

  • interest compounded every year

  • interest compounded per month

  • simple interest per month

MCQ
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उत्तर

interest compounded every year

shaalaa.com
Annuity
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 2.2: Insurance and Annuity - Q.1

संबंधित प्रश्न

Find accumulated value after 1 year of an annuity immediate in which ₹ 10,000 is invested every quarter at 16% p.a. compounded quarterly. [Given (1.04)4 = 1.1699]


Find the present value of an annuity immediate of ₹36,000 p.a. for 3 years at 9% p.a. compounded annually. [Given (1.09)−3 = 0.7722]


A person wants to create a fund of ₹ 6,96,150 after 4 years at the time of his retirement. He decides to invest a fixed amount at the end of every year in a bank that offers him interest of 10% p.a. compounded annually. What amount should he invest every year? [Given (1.1)4 = 1.4641]


Find the number of years for which an annuity of ₹500 is paid at the end of every year, if the accumulated amount works out to be ₹1,655 when interest is compounded annually at 10% p.a.


Find the present value of an annuity due of ₹ 600 to be paid quarterly at 32% p.a. compounded quarterly. [Given (1.08)−4 = 0.7350]


An annuity immediate is to be paid for some years at 12% p.a. The present value of the annuity is ₹ 10,000 and the accumulated value is ₹ 20,000. Find the amount of each annuity payment


In an ordinary annuity, payments or receipts occur at ______. 


Choose the correct alternative :

Rental payment for an apartment is an example of


______ is a series of constant cash flows over a limited period of time.


Solve the following :

A shopkeeper insures his shop and godown valued at ₹5,00,000 and ₹10,00,000 respectively for 80 % of their values. If the rate of premium is 8 %, find the total annual premium.


Solve the following :

Find the amount of an ordinary annuity if a payment of ₹500 is made at the end of every quarter for 5 years at the rate of 12% per annum compounded quarterly. [(1.03)20 = 1.8061]


Solve the following :

Find the least number of years for which an annuity of ₹3,000 per annum must run in order that its amount exceeds ₹60,000 at 10% compounded annually. [(1.1)11 = 2.8531, (1.1)12 = 3.1384]


Solve the following :

Find the rate of interest compounded annually if an ordinary annuity of ₹20,000 per year amounts to ₹41,000 in 2 years.


Solve the following :

A person purchases a television by paying ₹20,000 in cash and promising to pay ₹1,000 at end of every month for the next 2 years. If money is worth 12% p. a. converted monthly, find the cash price of the television. [(1.01)–24 = 0.7875]


Solve the following :

Find the present value of an annuity immediate of ₹20,000 per annum for 3 years at 10% p.a. compounded annually. [(1.1)–3 = 0.7513]


Solve the following :

A man borrowed some money and paid back in 3 equal installments of ₹2,160 each. What amount did he borrow if the rate of interest was 20% per annum compounded annually? Also find the total interest charged. [(1.2)3 = 0.5787]


Solve the following :

Find the future value after 2 years if an amount of ₹12,000 is invested at the end of every half year at 12% p. a. compounded half yearly. [(1.06)4 = 1.2625]


State whether the following statement is True or False:

A sinking fund is a fund established by financial organization


State whether the following statement is True or False:

The relation between accumulated value ‘A’ and present value ‘P’ is A = P(1+ i)n 


The present value of an immediate annuity for 4 years at 10% p.a. compounded annually is ₹ 23,400. It’s accumulated value after 4 years would be ₹ ______


The intervening time between payment of two successive installments is called as ______


For annuity due,

C = ₹ 20,000, n = 3, I = 0.1, (1.1)–3 = 0.7513

Therefore, P = `square/0.1 xx [1 - (1 + 0.1)^square]`

= 2,00,000 [1 – 0.7513]

= ₹ `square`


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