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
Nominal and effective interest rates are equal, when the interest is compounded______________?
(A) Quarterly
(B) Semi-annually
(C) Annually
(D) In no case, they are equal
Pick out the correct statement ?
(A) Jet engine can work, where there is no atmosphere
(B) Rocket engines cannot work, where there is no atmosphere
(C) Rocket engines carry oxygen required for the combustion in the form of oxidiser
(D) Jet engines also carry oxidiser
Pick out the wrong statement ?
(A) The X-rays cannot be deflected by electric field unlike cathode rays
(B) The intensity of X-rays can be measured by ionisation current produced due to the ionisation of gas by X-rays
(C) The quality of X-rays can be controlled by varying the anode-cathode voltage
(D) Crystal structure of a material can be studied by an electron microscope
Pick out the wrong statement ?
(A) Geothermal energy is a non-conventional source of energy
(B) Mass is converted into energy in both nuclear fission & fusion reaction
(C) Inhalation of mercury vapour is not harmful for human beings
(D) Inhalation of arsenic causes cancer
The payback method for the measurement of return on investment___________________?
(A) Gives a correct picture of profitability
(B) Underemphasises liquidity
(C) Does not measure the discounted rate of return
(D) Takes into account the cash inflows after the recovery of investments
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)
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
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
Pick out the wrong statement ?
(A) Debt-equity ratio of a chemical company describes the lenders contribution for each rupee of owner’s contribution i.e., debt-equity ratio = total debt/net worth
(B) Return on investment (ROI) is the ratio of profit before interest & tax and capital employed (i.e. net worth + total debt)
(C) Working capital = current assets + current liability
(D) Turn over = opening stock + production closing stock