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

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. 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

3. 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__________________?

   A. (1 + i)n/S
   B. S/(1 + i)n
   C. S/(1 + in)
   D. S/(1 + n)i

4. 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)

5. The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is__________________?

   A. 15%
   B. 10%
   C. 1.5%
   D. 150%

6. An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be ________________?

   A. 1000 (1 + 0.1/4)20
   B. 1000 (1 + 0.1)20
   C. 1000 (1 + 0.1/4)5
   D. 1000 (1 + 0.1/2)5

7. A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs _____________?

   A. 40,096
   B. 43,196
   C. 53,196
   D. 60,196

8. 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

9. Annual depreciation costs are constant, when the ______________ method of depreciation calculation is used ?

   A. Declining balance
   B. Straight line
   C. Sum of the years digit
   D. None of these

10. Effective and nominal interest rates are equal, when the interest is compounded__________________?

    A. Annually
    B. Fortnightly
    C. Monthly
    D. Half-yearly