A. Rs. 1,000
B. Rs. 1,244
C. Rs. 1,331
D. Rs. 1,464
FV = PV * (1+ i) ^n
= 850 * (1+0.1)^4
= 1244
Related Mcqs:
- If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?
A. Rs. 5,400
B. Rs. 5,900
C. Rs. 6,600
D. Rs. 6,802 - Future value of interest if it is calculated two times a year can be a classified as__________________?
A. Semiannual discounting
B. Annual discounting
C. Annual compounding
D. Semiannual compounding - In estimating value of cash flows, compounded future value is classified as its__________?
A. Terminal value
B. Existed value
C. Quit value
D. Relative value - If book value is greater than market value comparison with investors for future stock are considered as_______________?
A. Pessimistic
B. Optimistic
C. Experienced
D. Inexperienced - If market value is greater than book value, then investors for future stock are considered as___________________?
A. Experienced
B. Inexperienced
C. Pessimistic
D. Optimistic - Process of calculating future value of money from present value is classified as____________?
A. Compounding
B. Discounting
C. Money value
D. Stock value - In estimating value of cash flows, the compounded future value is classified as its _________?
A. terminal value
B. existed value
C. quit value
D. relative value - How many years will it take to pay off a Rs. 11,000 loan with a Rs. 1,241.08 annual payment and a 5% interest rate?
A. 6 years
B. 12 years
C. 24 years
D. 48 years - Risk of fall in income due to fall in interest rates in future is classified as__________?
A. Income risk
B. Investment risk
C. Reinvestment risk
D. Mature risk - Companies take savings as premium, invest in bonds and make payments to beneficiaries are classified as_____________?
A. Debit unions
B. Life insurance companies
C. Credit unions
D. Auto purchases
The correct answer to the question: "If you have Rs. 850 and you plan to save it for 4 years with an interest rate of 10%, what will be the future value of your savings?" is "Rs. 1,244".