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

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.

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.

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

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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.

Ms. Maria bought an insurance policy @ 3.25% for her car for 3 years. Her 1st premium is Rs. 26000. Tell price of her car. Also calculate the amounts of her 2nd and 3rd premium.

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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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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.

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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.

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 .

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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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.

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

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 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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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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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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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 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.

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 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 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.

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. 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 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.

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.

What is Fixed/Time Deposit Acount?

• Ans 1: Fixed or time deposit acount, as the name implies are deposits kept with a bank in an acount for a certain period of time ranging from 3month to 5 years.

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.

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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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 PLS Saving Acount?

• Ans 1: In Pakistan, the Profit and loss sharing (PLS) saving account was introduces in January,1982.PLS Saving account can be opened with small amount.

Ms. Maria bought an insurance policy @ 3.25% for her car for 3 years. Her 1st premium is Rs. 26000. Tell price of her car. Also calculate the amounts of her 2nd and 3rd premium.

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

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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

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 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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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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