alleryStart learning →A sum of Rs 8,000 earns simple interest at 5% a year. What is the interest after 3 years?
- Rs 1,200
- Rs 1,260
- Rs 1,000
- Rs 1,500
Show answer and solution
Correct answer: A. Rs 1,200
Simple interest is 8,000 x 5% x 3 = Rs 1,200.
CA Foundation Time Value of Money — practice questions
Explore 93 free Time Value of Money questions in CA Foundation Quantitative Aptitude. Open each question or exercise to read its content, reference answers and available explanation.
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Showing questions 1–30 of 93.
A sum of Rs 8,000 earns simple interest at 5% a year. What is the interest after 3 years?Read the answer and worked solution →Rs 10,000 is invested at 10% compounded annually. What is the amount after 2 years?Read the answer and worked solution →At 10% a year on Rs 5,000 for 2 years, compound interest exceeds simple interest by?Read the answer and worked solution →At 10% compounded yearly, Rs 2,000 grows to what value in 3 years?Read the answer and worked solution →Rs 1,331 is due in 3 years. Discounted at 10% yearly, its present value is?Read the answer and worked solution →A perpetuity pays Rs 500 every year. At a 10% rate, its present value is?Read the answer and worked solution →What is the present value of Rs 1,200 paid every year forever at 8%?Read the answer and worked solution →A bond pays Rs 80 every year forever. At an 8% required return, its value is?Read the answer and worked solution →A growing perpetuity's first payment is Rs 60, growth 2%, discount rate 12%. PV?Read the answer and worked solution →An investment costs Rs 900 and returns Rs 1,100 after one year at 10%. NPV is?Read the answer and worked solution →Cost Rs 12,000; inflows Rs 5,500 in year 1 and Rs 12,100 in year 2; rate 10%. NPV?Read the answer and worked solution →Rs 5,000 is invested to get Rs 5,500 after one year. At a 12% rate, the NPV is?Read the answer and worked solution →A value grows from Rs 1,000 to Rs 1,331 in 3 years. The CAGR is?Read the answer and worked solution →An investment of Rs 100 becomes Rs 400 in 2 years. Its CAGR is?Read the answer and worked solution →A population grows from 8 lakh to 27 lakh in 3 years. The CAGR is?Read the answer and worked solution →An EMI of Rs 5,000 for 24 months repays a Rs 100,000 loan. Total interest paid?Read the answer and worked solution →On a Rs 100,000 loan at 12% a year, the first month's interest is about?Read the answer and worked solution →A Rs 100,000 loan at 12% a year has a first EMI of Rs 10,000. Balance after it?Read the answer and worked solution →A rate of 20% a year compounded half-yearly is effectively what annual rate?Read the answer and worked solution →Rs 10,000 at 20% a year compounded half-yearly for one year becomes?Read the answer and worked solution →Rs 1,000 is deposited at each year end for 3 years at 10%. Final value?Read the answer and worked solution →Two yearly payments of Rs 1,100 start today. At 10%, their present value is?Read the answer and worked solution →Equal year-end deposits at 10% must build Rs 3,310 in 3 years. Each deposit?Read the answer and worked solution →What yearly sinking fund deposit at 10% builds Rs 4,641 in 4 years?Read the answer and worked solution →Rs 3,000 becomes Rs 3,600 in 2 years under simple interest. The rate is?Read the answer and worked solution →Simple interest of Rs 400 on Rs 2,000 at 5% a year takes how many years?Read the answer and worked solution →At simple interest a sum doubles in 10 years. The rate per annum is?Read the answer and worked solution →For 2 years at 10% a year compounded half-yearly, periods and rate per period?Read the answer and worked solution →A 5-year annuity pays $100 monthly at 12% nominal. Its present value is about?Read the answer and worked solution →Borrowing $10,000,000 at 10.5% for 120 months gives an EMI nearest to?Read the answer and worked solution →
Worked practice questions
Rs 10,000 is invested at 10% compounded annually. What is the amount after 2 years?
- Rs 11,000
- Rs 12,100
- Rs 12,000
- Rs 12,200
Show answer and solution
Correct answer: B. Rs 12,100
10,000 x 1.10 x 1.10 = Rs 12,100 because interest is earned on the first year's interest too.
At 10% a year on Rs 5,000 for 2 years, compound interest exceeds simple interest by?
- Rs 50
- Rs 100
- Rs 500
- Rs 25
Show answer and solution
Correct answer: A. Rs 50
Compound interest is 1,050 (500 + 550) against simple interest of 1,000, a gap of Rs 50.
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