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Questions and Answers
What is the monthly loan amortization amount for a loan of Rs. 6,00,000 at 12% annual interest rate?
What is the monthly loan amortization amount for a loan of Rs. 6,00,000 at 12% annual interest rate?
- Rs. 35,000
- Rs. 33,249.1 (correct)
- Rs. 30,000
- Rs. 40,000
In the context of interest rates, what is the key advantage of compound interest over simple interest?
In the context of interest rates, what is the key advantage of compound interest over simple interest?
- Greater benefit over longer investment periods (correct)
- Faster growth in initial periods
- Fixed interest rates
- Higher interest rates applied
If Rs. 38.55 must be invested now to obtain Rs. 100 after 10 periods, what concept does this illustrate?
If Rs. 38.55 must be invested now to obtain Rs. 100 after 10 periods, what concept does this illustrate?
- Compound Interest
- Simple Interest
- Present Value (correct)
- Future Value
What formula is used to calculate the Effective Rate of Interest when interest is paid more often than once a year?
What formula is used to calculate the Effective Rate of Interest when interest is paid more often than once a year?
If the interest rate is 10% payable quarterly, what is the effective rate of interest?
If the interest rate is 10% payable quarterly, what is the effective rate of interest?
What does 'Present Value' represent in financial terms?
What does 'Present Value' represent in financial terms?
In the context of interest rates, what does a higher number of compounding periods typically result in?
In the context of interest rates, what does a higher number of compounding periods typically result in?
How does compound interest differ from simple interest over time?
How does compound interest differ from simple interest over time?
What does a lower present value indicate about a future amount?
What does a lower present value indicate about a future amount?
If Rs. 100 should be received after 10 years and the present value is Rs. 38.55, what concept is being demonstrated?
If Rs. 100 should be received after 10 years and the present value is Rs. 38.55, what concept is being demonstrated?
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