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?

Related Mcqs:

1. You need Rs. 10,000 to buy a new television. If you have Rs. 6,000 to invest at 5 percent compounded annually, how long will you have to wait to buy the television?

   A. 8.42 years
   B. 10.51 years
   C. 15.75 years
   D. 18.78 years

2. 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?

   A. Rs. 1,000
   B. Rs. 1,244
   C. Rs. 1,331
   D. Rs. 1,464

3. A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?

   A. Rs. 300,000
   B. Rs. 500,000
   C. Rs. 800,000
   D. Rs. 1100,000

4. 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

5. During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

   A. Rs. 33,000
   B. Rs. 25,000
   C. Rs. 17,000
   D. Rs. 8,000

6. Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?

   A. 5 days
   B. 36 days
   C. 48 days
   D. 73 days

7. A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?

   A. 12%
   B. 25%
   C. 40%
   D. 60%

8. If the price of municipal bonds suddenly changes because of an unexpected interest rate change then the investment bank ____________?

   A. faces a high profit
   B. faces a loss
   C. face a inflation
   D. face an index risk

9. If market interest rate falls below coupon rate then bond will be sold__________?

   A. Below its par value
   B. Above its par value
   C. Equal to return rate
   D. Seasoned price

10. If coupon rate is equal to going rate of interest, then bond will be sold________?

    A. At par value
    B. Below its par value
    C. More than its par value
    D. Seasoned par value