Matric Part 1/9th Class General Math Chapter 4 Short Questions Test With Answer for Unit 4 Financial Mathematics

Find out the compound markup on Rs. 250,000 for one year @ 14% compounded annually.

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What is Commercial Banking?

• Ans 1: A banking business which is related to the accepting of deposits,advancing and undertakes other services for its client is caled commercial banking.

What is processing Fee?

• Ans 1: Processing fee or charges are the amount deducted by the bank to process the request of the client for financing of vehicle.

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In a certain years Javed puts Rs. 600 in a private bank at the end of March and Rs. 400 in the same bank at the end of June. The bank offers 3% per annum simple profit rate. Find the total amount Javed recieves from the bank at the end of December in the year.

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What is Down Payment?

• Ans 1: The customers is required to deposit the dwon payment with the bank aslong with application form.

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Mr. Javeed brough an insurance policy against his car worth Rs. 8,50,000 @ 4.25% for 3 years. What total amount will he pay as premium, if he had not claimed and damages during the period? Where depreciation is 10%.

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What is Pay Order?

• Ans 1: Pay order is like a cheaque,issued by bank on the request of its customer or in payment of its own expenses or dues,drawn on itself,to pay a specified sum of money to the order of specfied person.Pay Orders are usually issued by the bank on receipt of full amount involved.which means it would not be retruned unpaid due to lack of funds.it is also called banker cheaque of cahseri's cheaque.

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What is meant by Bill of Exchange?

• Ans 1: A bill of Exchange is an instrument in writing containing an unconditional order,signed by the maker ,directing a certain person to pay a certain amount only to or to the order of a certain person or the bearer of the instruments.

A company borrowed Rs. 6,600 from Bank Alfalah at 8% simple markup per annum.How much did the company owe to the bank at the end of the 11 months?

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Calculate the amount to be received by the heirs of an insured if he died 2 year after buying the policy while the amount of policy = Rs. 50,000 premium is fixed @ 4.2% yearly policy fee @ 0.3% Family income contract @ 0.6% Maturity period = 22 years Bonus @ 4.5% and Rs. 6000 yearly income is promised by the company.

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Define Types of Bank acounts?

• Ans 1: Current Acount : Very popular accounts with high degree of liquidity.
• Ans 2: Saving Acount : An important source of fund for the bank.
• Ans 3: Fixed Acount : An attractive source of funds for long term lending and investment purposes.

What is processing Fee?

• Ans 1: Processing fee or charges are the amount deducted by the bank to process the request of the client for financing of vehicle.

Ali rent to Abid Rs. 4800 for 7 months.At the end of this period Abid had to pay Ali profit of Rs. 119. What was the rate of simple profit per annum?

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What is Negotiable Instruments?

• Ans 1: The word "negotiable" means transfer for consideration whereas the word "instrument" means written documents in written which create a right in a favour of some person and which is freely transferable by delivery of edorsment.A negotiable instrument means a promissory note,a bill of exchange or cheaque payable either to the order or bearer of the instrument.

A bank increased the rate of profit from 3.5% to 4% per annum. Find how much more profit Saeed would recieve if he deposited Rs. 6400 in the bank for 6 months at the new profit rate.

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What is Online Banking?

• Ans 1: Electronic based banking services provided by devices such as ATM ,.POSs,Automated Clearing House,Network,Internet or Wire.In other words, online banking is a system of transmitting and executing instruction for banking transtions in a real time through electronic telecommunications and computerized links between bank and customers via telephone line satelite or automated teller machines.

Mrs. Javed invests in Saving Scheme Rs. 800 at 6% per annum and Rs. 1,200 at 7% per annum. What is her total amount of profit on these two investments?

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What is meant by Bill of Exchange?

• Ans 1: A bill of Exchange is an instrument in writing containing an unconditional order,signed by the maker ,directing a certain person to pay a certain amount only to or to the order of a certain person or the bearer of the instruments.

What is Down Payment?

• Ans 1: The customers is required to deposit the dwon payment with the bank aslong with application form.

How many types of bank acounts?

• Ans 1: There are three major types of bank acounts which can be maintained with bank to keep the deposit or surplus fund.
  
  1. Current Acount
  2. Saving Acount
  3. Fixed Acount

What is Negotiable Instruments?

• Ans 1: The word "negotiable" means transfer for consideration whereas the word "instrument" means written documents in written which create a right in a favour of some person and which is freely transferable by delivery of edorsment.A negotiable instrument means a promissory note,a bill of exchange or cheaque payable either to the order or bearer of the instrument.

Mr. Nadeem insured shop @ 3% for 3 years, the depreciation rate is 5% yearly. If he paid on amount of Rs. 21000 as the first premium, what is the worth of his shop. If he got a claim of Rs. 200,000 after two years, how much benfits did he get?

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What is Pay Order?

• Ans 1: Pay order is like a cheaque,issued by bank on the request of its customer or in payment of its own expenses or dues,drawn on itself,to pay a specified sum of money to the order of specfied person.Pay Orders are usually issued by the bank on receipt of full amount involved.which means it would not be retruned unpaid due to lack of funds.it is also called banker cheaque of cahseri's cheaque.

How many types of bank acounts?

• Ans 1: There are three major types of bank acounts which can be maintained with bank to keep the deposit or surplus fund.
  
  1. Current Acount
  2. Saving Acount
  3. Fixed Acount

What is Leasing/Financing?

• Ans 1: Lease is a contract whereby the owner of an asset,the lessor,gives the hirer,the lesses.
  There are two types of lease avaible to the business firms.

What is financial lease?

• Ans 1: It is long term lease which is non-cancelable contractual coomitment on the part of the part of leases to make a series of payment to the firm that actually own the asset,the losser,for use of the assets.

What is Down Payment?

• Ans 1: The customers is required to deposit the dwon payment with the bank aslong with application form.

How long would Rs. 1250 to be deposited at 6% per year simple profit to gain Rs. 750 simple profit?

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Mr. Ahmad Ali insured his house worth Rs. 75,00,000 @ 2% for 4 years, calculate the amount paid in 4 years. While the rate of depreciation is 10% yearly.

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Mr. Rehman bought a vehicle worth Rs. 7,50,000. He got it insured @ 3.5% for 5 years. How much he paid in total of covering the risks, if he had got a claim of damage worth Rs. 100, 000 during the period?

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Ali rent to Abid Rs. 4800 for 7 months.At the end of this period Abid had to pay Ali profit of Rs. 119. What was the rate of simple profit per annum?

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In a certain years Javed puts Rs. 600 in a private bank at the end of March and Rs. 400 in the same bank at the end of June. The bank offers 3% per annum simple profit rate. Find the total amount Javed recieves from the bank at the end of December in the year.

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Calculate the amount to be received by the heirs of an insured if he died 2 year after buying the policy while the amount of policy = Rs. 50,000 premium is fixed @ 4.2% yearly policy fee @ 0.3% Family income contract @ 0.6% Maturity period = 22 years Bonus @ 4.5% and Rs. 6000 yearly income is promised by the company.

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What is Debit/ATM Card?

• Ans 1: A debitt card enables the holder to have the purchased directly charged from funds in his acount at a deposit taking bank .ATM card ispayment card issued to a person from activiting automated teller machine-computer based terminal which allows consumer to tranfer withdraw funds.