All Free Quantitative Methods MCQs with Answers

• A. Rs. 9,200
• B. Rs. 9,000
• C. Rs. 9,440
• D. Rs. 10,000

Explanation: Simple interest equals PRT, so it is 8,000 × 0.06 × 2.5 = Rs. 1,200. Adding this interest to the principal gives a total amount of Rs.

• A. Rs. 10,800.00
• B. Rs. 10,824.32
• C. Rs. 10,864.00
• D. Rs. 10,832.00

Explanation: The quarterly rate is 8% divided by 4, or 2%, and there are four compounding periods. Thus, the amount is 10,000(1.02)^4 = Rs. 10,824.32.

• A. Rs. 100.00
• B. Rs. 152.50
• C. Rs. 150.00
• D. Rs. 162.50

Explanation: Simple interest is Rs. 3,000, while compound interest is 20,000[(1.05)^3 − 1] = Rs. 3,152.50.

• A. Rs. 2,486.85
• B. Rs. 3,000.00
• C. Rs. 2,735.54
• D. Rs. 3,310.00

Explanation: The present value of an annuity due equals the present value of an ordinary annuity multiplied by 1.10.

• A. Rs. 1,867.43
• B. Rs. 2,735.54
• C. Rs. 2,486.85
• D. Rs. 2,055.25

Explanation: The three payments first have a value of Rs. 2,486.85 at the end of year 2.

• A. Rs. 8,000.00
• B. Rs. 8,528.14
• C. Rs. 9,000.00
• D. Rs. 10,000.00

Explanation: For a sinking fund, the annual deposit is FV × i divided by [(1+i)^n − 1].

• A. Rs. 500
• B. Rs. 800
• C. Rs. 1,000
• D. Rs. 1,100

Explanation: Bank discount is calculated on the maturity value, using D = Mdt. Hence, D = 20,000 × 0.10 × 0.5 = Rs. 1,000.

• A. Rs. 10,500.00
• B. Rs. 11,000.00
• C. Rs. 11,300.00
• D. Rs. 11,157.02

Explanation: Each cash flow is discounted to the present separately. The value is 5,000 divided by 1.10 plus 8,000 divided by 1.10^2, which equals…

• A. It decreases as principal falls
• B. It remains exactly constant
• C. It increases steadily
• D. It becomes zero immediately

Explanation: Interest is calculated on the outstanding loan balance. As regular payments reduce the principal, the interest portion decreases and the…

• A. Rs. 11,200.00
• B. Rs. 11,274.97
• C. Rs. 11,236.00
• D. Rs. 11,360.00

Explanation: With continuous compounding, the amount is A = Pe^(rt). Thus, A = 10,000e^(0.06×2) = approximately Rs. 11,274.97.

• A. Rs. 13,310.00
• B. Rs. 13,500.00
• C. Rs. 13,400.96
• D. Rs. 13,600.00

Explanation: The semiannual rate is 5% and there are six compounding periods. Thus, the value is Rs. 10,000(1.05)^6 = Rs. 13,400.96.

• A. 3.00%
• B. 3.33%
• C. 4.00%
• D. 4.33%

Explanation: The simple interest is Rs. 1,600. Since I = PRT, the rate is 1,600 divided by Rs. 12,000 multiplied by 4, which equals 3.33% per annum.

• A. Rs. 900.00
• B. Rs. 909.09
• C. Rs. 1,000.00
• D. Rs. 1,111.11

Explanation: The present value is 10,000 divided by 1.10, or Rs. 9,090.91. True discount is the maturity value minus present value, giving Rs. 909.09.

• A. Rs. 25,000
• B. Rs. 50,000
• C. Rs. 40,000
• D. Rs. 66,667

Explanation: For a growing perpetuity, present value equals the next payment divided by the discount rate minus the growth rate.

• A. Rs. 30,000
• B. Rs. 40,000
• C. Rs. 36,000
• D. Rs. 35,000

Explanation: Interest for the first year is Rs. 5,000, so the balance before payment is Rs. 55,000. After paying Rs.

• A. 9.00%
• B. 9.09%
• C. 10.00%
• D. 11.11%

Explanation: The equivalent discount rate is d = i/(1+i). Hence, d = 0.10/1.10 = 0.0909, or 9.09%.

• A. Rs. 500.00
• B. Rs. 413.22
• C. Rs. 909.09
• D. Rs. 1,000.00

Explanation: The present value of the returns is 6,000/1.10 + 6,000/(1.10)^2 = Rs. 10,413.22. Subtracting the initial cost gives an NPV of Rs. 413.22.

• A. Rs. 2,800.00
• B. Rs. 3,600.00
• C. Rs. 3,200.00
• D. Rs. 2,952.67

Explanation: Each payment is discounted according to its payment date: 1,000/1.10 + 1,200/(1.10)^2 + 1,400/(1.10)^3. The sum is approximately Rs.

• A. 8%
• B. 9%
• C. 10%
• D. 11%

Explanation: The growth factor over two years is 12,100/10,000 = 1.21. Since 1.21 is equal to 1.10 squared, the annual compound rate is 10%.

• A. Rs. 965.29
• B. Rs. 950.00
• C. Rs. 980.00
• D. Rs. 1,000.00

Explanation: The bond price is the present value of its Rs. 80 coupon in year 1 and Rs. 1,080 in year 2. Thus, price = 80/1.10 + 1,080/(1.10)^2 = Rs.