If ‘S’ is the amount available after ‘n’ interest periods for an initial principal ‘P’ with the discrete compound interest rate ‘i’, the present worth is given by__________________?

Related Mcqs:

1. The amount of simple interest during ‘n’ interest period is (where, i = interest rate based on the length of one interest period, p = principal) ?

   A. p.i.n.
   B. p(1 + i.n)
   C. p(1 + i)n
   D. p(1 – i.n)

2. The amount of compounded interest during ‘n’ interest periods is_________________?

   A. p[(1+i)n – 1)]
   B. p(1 + i)n
   C. p(1 – i)n
   D. p(1 + in)

3. An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the__________________?

   A. Manufacturing cost
   B. Depreciation by sinking fund method
   C. Discrete compound interest
   D. Cash ratio

4. With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project ?

   A. Decreases
   B. Increases
   C. Increases linearly
   D. Remain constant

5. If an amount R is paid at the end of every year for ‘n’ years, then the net present value of the annuity at an interest rate of i is _________________?

   A. R [{(1 + i)n – 1}/ i ]
   B. R [{(1 + i)n – 1}/ i (1 + i)n]
   C. R(1 + i)n
   D. R/(1 + i)n

6. If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be ______________ percent ?

   A. 10
   B. 20
   C. > 20
   D. < 20

7. Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost × (index value at present/ index value at time original cost was obtained). The most major component of this cost index is____________________?

   A. Fabricated equipment and machinery
   B. Process instruments and control
   C. Pumps and compressor
   D. Electrical equipments and material

8. A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs ?

   A. 121
   B. 110
   C. 97
   D. 91

9. Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs ?

   A. 15000
   B. 16105
   C. 18105
   D. 12500

10. According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with ” times the capacity of the first unit is approximately equal to _____________ times the cost of the initial unit?

    A. n
    B. n0.6
    C. n0.4
    D. √n