11th Class I.Com Business Mathematics Chapter 2 Short Question Preparation

Question # 1

What are the characteristics of an annuity?

Ans 1: The important characteristics of an annuity are given as under:
Ans 2: i) There should be regularity in payment i.e,the sequence of payments may continue for finite or infinite period.
Ans 3: ii) The amount of payment is fixed throughout the term of annuity.
Ans 4: iii) The interval of time in two consecutive payments of an annuity is usually constant such as annually,half annually,quarterly or monthly etc.
Ans 5: iv) Growth rate of money remains constant throughout the term of annuity and charged compounded.The rate of interest usually mentioned on annual basis but may be compounded on half annually,quarterly or monthly basis.The interest charged compounded means the principal amount keep on change after every specific.

Question # 2

Define annuity due.

Ans 1: Annuity Due:An annuity is considered as to be annuity due if every payment is made at the beginning of each payment period and continue for a definite period.This annuity is also called beginning mode annuity.

Question # 3

What is meant by interest?

Ans 1: Interest:Interest is just like a rent which is paid for having the use of money.
Ans 2: Explanation: Some corporations pay millions of rupees of interest each as for the use of money they have borrowed.We earn money on sums we have invested in saving accounts,certificates of deposits,and money market funds.We also pay for the use of money which we have borrowed for house loans,mortgages,or credit card purchases.

Question # 4

What is amount or maturity value?

Ans 1: Amount Or maturity:Maturity value is the amount payable to an investor at the end of a debt instrument holding period(maturity data).
Ans 2: Example:For most bonds the maturity value is the face amount of the bond.For some certificates of deposit and other investment all of deposit and other investments all of the interest is paid at maturity.

Question # 5

Explain the annuity certain.

Ans 1: Annuity Certain:A financial instrument that provides a stream of payments for a predetermining number of years.An annuity certain will continue a stream of payment remitted to the annuitant's beneficiary or estate,if the annuitant dies before the payment term ends.

Question # 6

Define sum of an annuity.

Ans 1: Sum of an Annuity:The lump-sum amount to be received at the end of the annuity is called sum of annuity or amount of annuity.
Ans 2: Formulae: Following formulae are used to calculate sum of ordinary annuity and annuity due.

Question # 7

Define annuity.

Ans 1: Annuity:The regular,fixed and periodic sequence of payment with the charging of compound interest accordingly is called an annuity

Question # 8

Define ordinary annuity.

Ans 1: Ordinary Annuity:An annuity is considered as to be ordinary annuity if every payment is made at the end of each payment period and continues for a definite period.This annuity is also called ending mode annuity.

Question # 9

Define Principal.

Ans 1: Principal:The amount of money that is initially lent or invested in any business deal is called the principal.

Question # 10

Write at least two key points of compound interest.

Ans 1: Important Key Points of Compound Interest: i) Principal keeps on charging from period to period.
Ans 2: ii) Amount of interest also keeps on changing from period to period.
Ans 3: iii) Rate of interest remains fixed for all periods.

Latest Educational News Stories

Pakistan's Largest Database of Colleges and Universities

BS Programs

University Past Papers

University Results

Exam Results 2024

Study Abroad Programs and Opportunities for Pakistani Students

11th Class I.Com Business Mathematics Chapter 2 Short Question Preparation

ICOM Part 1 English Medium Subjects

ICOM Part 1 Urdu Medium Subjects

Online Short Questions For Chapter 2 "11th Class Business Math Chapter 2 Short Questions Preparation "

Business Mathematics - 11th Class Business Math Chapter 2 Short Questions Preparation

What are the characteristics of an annuity?

Define annuity due.

What is meant by interest?

What is amount or maturity value?

Explain the annuity certain.

Define sum of an annuity.

Define annuity.

Define ordinary annuity.

Define Principal.

Write at least two key points of compound interest.

Prepare Complete Set Wise Questions For Chapter 2 "11th Class Business Math Chapter 2 Short Questions Preparation "

Set 1

11th Class Business Math Chapter 2 Short Questions Preparation - Set 1

What are the characteristics of an annuity?

Define annuity due.

What is meant by interest?

What is amount or maturity value?

Explain the annuity certain.

Define sum of an annuity.

Define annuity.

Define ordinary annuity.

Define Principal.

Write at least two key points of compound interest.

11th Business Mathematics Chapter 2 Test

Is this page helpful?