What is the simple interest on Rs. 8,000 at an annual rate of 6 percent for two years?
Correct answer: B. Rs. 960
- A. Rs. 860
- B. Rs. 960
- C. Rs. 1,060
- D. Rs. 1,160
Explanation
Simple interest is calculated as principal multiplied by rate and time: 8,000 × 0.06 × 2 = Rs. 960. The other amounts result from using an incorrect rate or adding interest incorrectly.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Finance and Banking Basics
Business finance covers capital requirements, sources of funds, budgeting, cash flow, investment decisions and basic financial statements and ratios. Banking includes commercial bank functions, deposits, loans, credit creation, interest and the role of a central bank, including its monetary policy and regulatory functions.
Practise Finance and Banking Basics
30 free Finance and Banking Basics MCQs from Introduction to Business, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Introduction to Business questions like this
Introduction to Business 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 Finance and Banking Basics questions
In Islamic finance, which practice is generally prohibited?
Which activity is normally included in a bank's asset side?
A project with a positive net present value generally should be accepted because it:
The time value of money means that a rupee received today is generally:
A business has current assets of Rs. 240,000 and current liabilities of Rs. 120,000. What is its current ratio?
Which feature most clearly distinguishes a demand deposit from a fixed-term deposit?