If you have Rs. 850 and you plan to save it for 4 years with an interest rate of 10%, what will be the future value of your savings?
Correct answer: B. Rs. 1,244
- A. Rs. 1,000
- B. Rs. 1,244
- C. Rs. 1,331
- D. Rs. 1,464Compare Credit Cards
Explanation
Using compound growth, future value = 850 × (1.10)⁴ = approximately Rs. 1,244. The other figures do not result from compounding Rs. 850 at 10% for four years.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
In case of international business which of the given factor(s) must be considered?
Which of the following refers to the difference between the sale price and cost of inventory?
Who of the following make a broader use of accounting information?
Which of the following measure reveals how much profit a company generates with the money shareholders have invested?
A firm reports total liabilities of Rs. 300,000 and owner's equity of Rs. 500,000. What would be the total worth of the firm's assets?
Which of the following statement is TRUE regarding debt?