Mathematics Test

Question 1
5 / -1

Which of the following is correct regarding perpetuaty?

A
Perpetuity is a situation where a stream of cash flow payments continues and ends after a definite period of time.

B
Perpetuity in the financial system is a situation where a stream of cash flow payments continues indefinitely

C
Perpetuity s a situation where a stream of cash flow payments may continue forever or for a definite period of time

D
None of the above.

Question 2
5 / -1

Which of the following is repressing the formula to calculate the future value of the perpetuity at the rate i per period which yields Rs. R at the beginning of each period?

A
R + \(\frac{R}{i}\)

B
\(\frac{R}{i}\)

C
Can not be defined

D
None

Question 3
5 / -1

Consider the following statements:
1. Bond is a written contract between borrower and lender.
2. When a bond sells at face value then YTM > current yield > coupon yield
3. The valuation of a bond is the determination of the fair price of a bond.
4. if the market price of the bond is greater than its face value, the bond is sold at the discount.
The correct statements is/are:

A
(1) and (2)

B
(2) and (3)

C
(1) and (3)

D
(3) and (4)

Question 4
5 / -1

At 6% converted quarterly, find the present value of a perpetuity of Rs. 600 payable at the end of each quarter.

A
48000

B
40000

C
42000

D
None

Question 5
5 / -1

What amount of money will be the present value of the perpetuity of Rs 750 payable at the end of each quarter if the money is worth 12% compounded annually?

A
Rs.30000

B
Rs.25000

C
Rs.20000

D
Insufficient data

Question 6
5 / -1

Mr. and Mrs. want to purchase a house for ₹30,00,000 with a down payment of ₹5,00,000. If they can amortize the balance at 12% per annum compounded monthly for 30 years with the EMI as 25,000 Rs then the total interest paid by them will be?

A
35,00,000 Rs

B
65,00,000 Rs

C
25,00,000 Rs

D
None

Question 7
5 / -1

On 1st April 2021, Balesh purchased a refrigerator costing 20,000 Rs and spent 2000 Rs on its repair. The estimated effective life of it is 10 years with a scrap value of 5000 Rs. The depreciation with the financial year ending on 31st March 2022 is

A
1650 Rs

B
1750 Rs

C
1600 Rs

D
1700 Rs

Question 8
5 / -1

Consider a bond with its present value of all the periodic payments is ₹1200. The face value is ₹ 1000 and the bond has 5 years to maturity. The yield to maturity is 2% compounded semi-annually. The value of the bond is?
(Given 1.01^-10 ≈ 0.905)

A
₹2100

B
₹2105

C
₹2110

D
₹2115

Question 9
5 / -1

Rohan establishes a sinking fund to provide for payment of rupees 237500 for the education of his son maturing in 3 years. The contributions are to be made at the end of each year. Find the amount of each annual deposit if the interest is 15% per annum.(Take 1.153 = 3.375)

A
17000 Rs

B
12000 Rs

C
15000 Rs

D
None

Question 10
5 / -1

How much money is needed to endure a series of lectures costing Rs 2500 at the beginning of each year indefinitely, if money is worth 2.5% compounded annually?

A
Rs. 75000

B
Rs. 85000

C
Rs. 84040

D
Rs.102500

Submit Test

Mathematics Tes...

Question 1

​Perpetuity is a situation where a stream of cash flow payments continues and ends after a definite period of time.

​Perpetuity in the financial system is a situation where a stream of cash flow payments continues indefinitely

​Perpetuity s a situation where a stream of cash flow payments may continue forever or for a definite period of time

None of the above.

Question 2

R + \(\frac{R}{i}\)

\(\frac{R}{i}\)

Can not be defined

None

Question 3

(1) and (2)

(2) and (3)

(1) and (3)

(3) and (4)

Question 4

48000

40000

42000

None

Question 5

Rs.30000

Rs.25000

Rs.20000

Insufficient data

Question 6

35,00,000 Rs

65,00,000 Rs

25,00,000 Rs

None

Question 7

1650 Rs

1750 Rs

1600 Rs

1700 Rs

Question 8

₹2100

₹2105

₹2110

₹2115

Question 9

17000 Rs

12000 Rs

15000 Rs

None

Question 10

Rs. 75000

Rs. 85000

Rs. 84040

Rs.102500

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Question Analysis

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Perpetuity is a situation where a stream of cash flow payments continues and ends after a definite period of time.

Perpetuity in the financial system is a situation where a stream of cash flow payments continues indefinitely

Perpetuity s a situation where a stream of cash flow payments may continue forever or for a definite period of time