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

What is Credit Card?

• Ans 1: A card indicating that the holder has been granting a line of credit.It enables the holder to make purchases or with draw cash up to prearranged ceiling.The credit granted can be settle in fully by the end of a specified periodor can be settled in parts.with the balance taken as extended credit.

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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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XYZ Bank charges 2.25% per month simple markup on presonal loans. If Ali borrows Rs. 6,400 for a period of 2 years / month, find the total markup he has to pay to XYZ Bank.

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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 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.

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Find the compound profit on Rs. 54000 for one year at 12% per annum.

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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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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 Foreign Currency Acounts?

• Ans 1: A foreign Currency acount is the acount maintained with the bank in foreign currency,like Dollars,Pounds,Euro etc.Foreign Currency acounts can be operated in Current Saving,Fixed accounts.Rate of profit in a foreign acount is very nomial as compared to local currency accounts.

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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.

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 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 Operational False?

• Ans 1: It is short-term lease which is cancelable at the option of the firm leasing the assets.Such leases are commonly used for leasing such items as computer hardware,vahicles and eqiupment etc.

At what annual rate of profit would a sum of Rs.680 will increase to Rs. 850 in 3 years and 4 months?

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What are the Parties of bill of Exchange?

• Ans 1: Drawer: the person who draw the bill. Drawee:the person in whose favour the bill drawn. Payee:the persons to whom the payment is made. Cheaque: A bill of exchange drawn on a specfied bank and not expressed to be payable,otherwise then on demand .

What is Operational False?

• Ans 1: It is short-term lease which is cancelable at the option of the firm leasing the assets.Such leases are commonly used for leasing such items as computer hardware,vahicles and eqiupment etc.

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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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 Formula of Calculation of Profit?

• Ans 1: The rates of Profit are declared by bank on six month or on annual basic. Profit(simple)=Principle*time*rate/100

What is Down Payment?

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

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

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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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Explain Bank Draft.

• Ans 1: An Order to pay money,draw by one branch of a bank upon another branch of the same bank for an amount of money payable to or order of payee or on demand.The bank draft has an important advantage over a cheque as it would not be dishonered for lack of funds since it is funded instument.

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Explain Life Insurance.

• Ans 1: Life insurance is a contract where in a maturity period is agreed between the parties to pay a sim equal is original amount and the profit,which is called bonus.Otherwise it is paid on death or in case of accident etc,whereever comes earlier.A person can also get an insurance policy against old age any disability,the amount of which may range from 10% to 50& of the income of the insurer.

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 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. 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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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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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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A financial institution charges Rs. 55 simple profit on a sum of money which is borrowed for five months. Given that the rate of profit is 12% per annum, find the sum of money.

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Find compound profit on Rs. 600 for 4 year at 6 percent per annum.

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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.

At what annual rate of profit would a sum of Rs.680 will increase to Rs. 850 in 3 years and 4 months?

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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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XYZ Bank charges 2.25% per month simple markup on presonal loans. If Ali borrows Rs. 6,400 for a period of 2 years / month, find the total markup he has to pay to XYZ Bank.

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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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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 Operational False?

• Ans 1: It is short-term lease which is cancelable at the option of the firm leasing the assets.Such leases are commonly used for leasing such items as computer hardware,vahicles and eqiupment etc.