MCQ for CA Foundation Maths Chapter 4 TIME AND VALUE OF MONEY

Sample Multiple Choice Questions (MCQ's) for CA Foundation - Paper 3 - Business Mathematics and Logical Reasoning & Statistics - Chapter 4 TIME AND VALUE OF MONEY - For Practice relevant for Dec 22 and May/June 23 Examinations

Q:1  The difference between compound and simple interest at 5% per annum for 4 years on Rs 20,000 is Rs ________ 

  1. 250
  2. 277
  3. 300
  4. 310

Answer: 4

Q:2  The compound interest on half-yearly rests on Rs 10,000 the rate for the first and second years being 6% and for the third year 9% p.a. is .

  1. 2,200
  2. 2,287
  3. 2,285
  4. None

Answer: 4

Q:3  Johnson left Rs 1,00,000 with the direction that it should be divided in such a way that his minor sons Tom, Dick and Harry aged 9, 12 and 15 years should each receive equally after attaining the age 25 years. The rate of interest being 3.5%, how much each son receive after getting 25 years old?

  1. 50,000
  2. 51,994
  3. 52,000
  4. None

Answer: 4

Q:4 A machine depreciates at 10% of its value at the beginning of a year. The cost and scrap value realized at the time of sale being Rs 23,240 and Rs 9,000 respectively. For how many years the machine was put to use?

  1. 7 years
  2. 8 years
  3. 9 years
  4. 10 years

Answer: 3

Q:5  A machine worth Rs 4,90,740 is depreciated at 15% on its opening value each year. When its value would reduce to Rs 2,00,000?

  1. 4 years 6 months
  2. 4 years 5 months
  3. 4 years 7 months
  4. 5 years 7 months approximately

Answer: 4

Q:6  A machine worth Rs 4,90,740 is depreciated at 15% of its opening value each year. When its value would reduce by 90%?

  1. 11 years 6 months
  2. 11 years 7 months
  3. 11 years 8 months
  4. 14 years 2 months approximately

Answer: 4

Q:7 Alibaba borrows Rs 6 lakhs Housing Loan at 6% repayable in 20 annual installments commencing at the end of the first year. How much annual payment is necessary.

  1. Rs 52,420
  2. Rs 52,419
  3. Rs 52,310
  4. Rs 52,320

Answer: 3

Q:8 A sinking fund is created for redeeming debentures worth Rs 5lakhs at the end of 25 years. How much provision needs to be made out of profits each year provided sinking fund investments can earn interest at 4% p.a.?

  1. Rs 12,006
  2. Rs 12,040
  3. Rs 12,039
  4. Rs 12,035

Answer: 1

Q:9  A machine costs Rs 5,20,000 with an estimated life of 25 years. A sinking fund is created to replace it by a new model at 25% higher cost after 25 years with a scrap value realization of Rs 25000. what amount should be set aside every year if the sinking fund investments accumulate at 3.5% compound interest p.a.?

  1. Rs 16,000
  2. Rs 16,500
  3. Rs 16,050
  4. Rs 16,005

Answer: 3

 

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