A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs ?
Correct answer: A. 121
- A. 121
- B. 110
- C. 97
- D. 91
Explanation
With 10% interest every half-year, one year contains two compounding periods: Rs. 100 × (1.10)² = Rs. 121. The half-yearly rate must therefore be applied twice.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
Practise Plant Design and Economics
803 free Plant Design and Economics MCQs from Chemical Engineering, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Chemical Engineering questions like this
Chemical Engineering is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
More Plant Design and Economics questions
Annual depreciation costs are constant, when the ______________ method of depreciation calculation is used ?
Which of the following is not a component of the fixed capital for a chemical plant facility ?
If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by__________________?
Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method ?
Effective and nominal interest rates are equal, when the interest is compounded__________________?
In a chemical process plant, the total product cost comprises of manufacturing cost and the__________________?