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

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

• Ans 1:

• Ans 1:

• Ans 1:

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.

• Ans 1:

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?

• Ans 1:

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.

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 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.

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.

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.

• Ans 1:

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

• Ans 1:

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.

• Ans 1:

• Ans 1:

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.

• Ans 1:

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.

• Ans 1:

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.

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%.

• Ans 1:

• Ans 1:

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.

• Ans 1:

• Ans 1:

• Ans 1:

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.

• Ans 1:

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.

• Ans 1:

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

• Ans 1:

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

• Ans 1:

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

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.

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.

• Ans 1:

• Ans 1:

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 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.

• Ans 1:

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 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.

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 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?

• Ans 1:

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.

• Ans 1:

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 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.

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.

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%.

• Ans 1:

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.

• Ans 1:

• Ans 1:

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.

• Ans 1:

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.