CPT Chapter Simple and Compound interest
With Anand.Duration: 6hrs 04 mins
|Interest Basic & Simple Interest|
|Why we charge Interest||04:52|
|Types of Interest||04:03|
|Simple Interest (SI)- Concept and Formulae||05:40|
|Problems on SI||33:33|
|Compound Interest (CI)||06:26|
|How to use Calculator||08:41|
|Problems on CI 1||22:52|
|Problems on CI 2||24:53|
|Combined Problems on SI & CI||17:34|
|Change in Interest rate||11:36|
|Nominal vs. ERR||06:25|
|Problems on ERR||06:50|
|Problems on Depreciation||11:08|
|Concept of Annuity||08:12|
|Features of Annuity||02:51|
|Amount vs. Present Value||04:07|
|Problems1 on Annuity||33:13|
|Problems2 on Annuity||36:15|
|Problem Advance Annuity||13:09|
Few things which we have covered
Basics of Interest
SI & CI Combined
Change in Interest Rate
Why do we pay Interest?
Time Value of Money
Rate of Interest (r)
S.I on Rs. 3500 for 3 years at 12% per annum is
(a) Rs. 1200 (b) 1260 (c) 2260 d) none of these
P = Rs. 8500, A = Rs. 10200, R = 12½ % SI, t will be.
(a) 1 yr. 7 mth. (b) 2 yrs. (c) 1 1h yr. (d) none of these
Rs.8,000 becomes Rs.10,000 in two years at simple interest. The amount that will become Rs.6,875 in 3 years at the same rate of interest is :
(a) Rs 4,850
In how much time would the simple interest on a certain sum be 0.125 times the principal at 10% per annum?
(a) 1 1/4 Years
(b) 1 3/4 Years
(c) 2 1/4 Years
(d) 2 3/4 Years
The present value of Rs.10000 due in 2 years at 5% p.a. compound interest when the interest is paid on yearly basis is Rs.
(a) 9070 (b) 9000 (c) 9061 (d) None
Compound & Simple Interest Combined-
If the simple interest on a sum of money at 12% p.a. for two years is Rs.3,600. The compound interest on the same sum for two years at the same rate is :
The difference between compound and simple interest at 5% per annum for 4 years on Rs. 20000 is Rs.
(a) 250 (b) 277 (c) 300 (d) 310
The difference between the simple and compound interest on a certain sum for 3 year at 5% p.a. is Rs.228.75. The compound interest on the sum for 2 years at 5% p.a. is :
Change in Interest Rate-
The compound interest on half-yearly rests on Rs.10000 the rate for the first and second years being 6% and for the third year 9% p.a. is Rs. .
(a) 2200 (b) 2287 (c) 2285 (d) None
A person deposited Rs.5,000 in a bank. The deposit was left to accumulate at 6% compounded quarterly for the first five years and at 8% compounded semi-annually for the next eight years. The compound amount at the end of 13 years is :
(c) Rs 13613.10
Nominal vs Effective Rate of Return
The effective rate of interest corresponding to a nominal rate 3% p.a payable half yearly is
(a) 3.2% p.a (b) 3.25% p.a (c) 3.0225% p.a (d) none of these
The effective rate equivalent to nominal rate of 6% compounded monthly is :
Methods of Depreciation-
Straight Line Method
Written Down Value (WDV Method)
A machine is depreciated at the rate of 20% on reducing balance. The original cost of the machine was Rs. 100000 and its ultimate scrap value was Rs. 30000. The effective life of the machine is
(a) 4.5 years (appx.) (b) 5.4 years (appx.)
(c) 5 years (appx.) (d) none of these
Features of Annuity-
Fixed Instalments paid
Time interval between two payments are same
Payment over a fixed period of time
First Instalment at the end of first period
Last Instalment doesn’t fetch any interest
Amount (A) is in future and Present Value (P) is todays value
Amount Vs Present Value-
Loan taken Rs.5 lakhs, to be paid over 15 years at EMI.
1200pm Investment made, At retirement age you get Rs.35 lakhs.
Existing cost of Machine Rs.3 lakhs,purchased on instalment of 20k pm.
Scrap value of Machine after 15 years life is Rs.1 lakhs.
Raja wishes his wife Rani to have Rs.40 lakhs at his death.
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