September 25, 2023

# Free MCQ QUIZ on Interest & Annuity-Set-1

## MCQ QUIZ on Interest & Annuity

MCQ QUIZ on Interest & Annuity
Online MCQ QUIZ on Interest & Annuity | for practice is below 👇 after MCQs
1) When interest is calculated uniformly on the original principal throughout the period then it is called –
A.Simple Interest
B.Compound Interest
C.Both
D.Non of the above

2) Interest on Interest is called as-
A.Simple Interest
B.Compound Interest
C.Both
D.Non of the above

3)The fixed interval of time at the end of which the interest is calculated is called
A.Conversion Period
B.Non Conversion Period
C.Both

4)When the interest is compounded more than once in a year than the actual percentage of interest per year is called
A.Effective interest rate
B.Non Effective interest rate
C.Defective interest rate
D.Non of the above

5)Effective interest rate is not related to the amount of principal. This statement is
A.True
B.False
C.Both
D.Non of the above

Online MCQ QUIZ on Interest & Annuity | for practice is below 👇 after MCQs

6)Effective rate of interest is always less than the nominal rate of interest. This is –
A.True
B.False
C.Both
D.Non of the above

7)_______is Regular payment of fixed sum made at equal interval of time.
A.Annuity
B.Payment
C.Installment
D.Non of the above

8)If the payment is made at the end of first period then it is called
A.Annuity regular
B.Annuity irregular
C.EMI irregular
D.Non of the above

9)If payment of an annuity is made at the beginning of each period then the annuity is called
A.Annuity Due
B.Annuity Done
C.Annuity Paid
D.Immediate Annuity

10)If payment of an annuity is made at the end of each period, then the annuity is called
A.Annuity Due
B.Annuity Done
C.Annuity Paid
D.Immediate Annuity

Online MCQ QUIZ on Interest & Annuity | for practice is below 👇 after MCQs

11) If the payments are made forever is called
A.Annuity Due
B.Annuity Paid
C.Immediate Annuity
D.Perpetuity

12)The tomorrow’s value of today’s money compounded at a particular rate of interest is called
A.Future Value Of Annuity
B.Present Value Of Annuity
C.Past Value Of Annuity
D.Future-Past Value Of Annuity

13)The today’s value of tomorrow’s money discounted at a particular interest rate is called
A.Future Value Of Annuity
B.Present Value Of Annuity
C.Past Value Of Annuity
D.Future-Past Value Of Annuity

14) A fund created by company to meet predetermined debts or certain liabilities out of their profit at the end of every accounting year is called
A.Sinking Fund
B.Employability Fund
C.Small fund
D.Non of the above

15) S.I. means
A.Simple Interest
B.Simple compound Interest
C.Small installment
D.Non of the above

Online MCQ QUIZ on Interest & Annuity | for practice is below 👇 after MCQs

16) S.I. formula
A.PRN/100
B.RPN/100
C.NPR/100
D.All of the above

17) In simple interest formula : ‘P’ means
A.Principle
B.Principal
C.Profit
D.Perpetuity

18)In simple interest formula : ‘R’ means
A.Rate of Interest
B.Raw data
C.Rate of principal
D.Non of the above

19) In simple interest formula: ‘N’ means
A.No. of Year
B.No. of Months
C.No. of days
D.No. of terms

20) S.I. on Rs.1000 @ 6% p.a. for 5 year.
A.300
B.200
C.330
D.310

Online MCQ QUIZ on Interest & Annuity | for practice is below 👇 after MCQs

21) S.I. on Rs.1200 @ 10 % p.a. for 2 year.
A.230
B.240
C.250
D.260

22) C.I. means
A.Compound Interest
B.Complete interest
C.Compound Simple Interest
D.Non of the above

23) In the formula of amount of immediate annuity -‘P’ means
A.Present value of immediate annuity
B.Proper value of immediate annuity
C.Perfect value of immediate annuity
D.Present value of principal

24) In the formula of amount of immediate annuity -‘X’ means
A.Periodic Installment
B.No. of installment
C.No. of periodic installment
D.Non of the above

25) In the formula of amount of immediate annuity -‘i’ means
A.Rate of interest per rupee per period
B.Rate of investment per rupee per period
C.Rate of interest
D.Non of the above

Online MCQ QUIZ on Interest & Annuity| for practice is below 👇 after MCQs

26) Academic prizes is a example of
A.Simple Annuity
B.Immediate annuity
C.Present annuity
D.Perpetuity

27) Formula of Present value of Immediate annuity
A.P= X/i { 1- (1+i)^-n}
B.P= X/i { 1- (i+i)^-n}
C.P= X/i { L- (1+i)^-n}
D.P= X/L { 1- (1+i)^-n}

28) Formula of Amount of Immediate annuity
A.P= X/i {(1+i)^n-1}
B.P= X/i {(1+i)^n+1}
C.P= X/i {(1-i)^n-1}
D.P= X+i {(1+i)^n-1}

29) The period for payment is called
A.Status
B.Statas
C.stutus
D.Non of the above

30) Find compound interest on Rs.1200 @ 9% p.a. for 12 months
A.1070
B.1080
C.1090
D.1100

Online MCQ QUIZ on Interest & Annuity | for practice is below 👇

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