Question No 22:
You borrow £3,000 and pay 10% each year interest. Ignoring capital, if you pay this interest at the end of each year, what is the present value of the interest payable at the end of the third year?
A. (3/10) x £300 x 3
B. (7/10) x £300
C. (10/11)^3 x £300
D. £3000 x (11/10)^3
Answer: C
Thursday, 27 August 2015
Thursday, 20 August 2015
Cima C03 Exam Question No 21
Question No 21:
A fixed-interest $200,000 mortgage, with annual interest compounded at 6% each year, is to be repaid by 15 equal year-end repayments of $R.
The annual repayment $R will be closest to
A. $14,133.
B. $20,593.
C. $31,954.
D. $83,400.
Answer: B
A fixed-interest $200,000 mortgage, with annual interest compounded at 6% each year, is to be repaid by 15 equal year-end repayments of $R.
The annual repayment $R will be closest to
A. $14,133.
B. $20,593.
C. $31,954.
D. $83,400.
Answer: B
Wednesday, 12 August 2015
Cima C03 Exam Question No 20
Question No 20:
£2,000 is invested in a bank account. The account earns compound interest at 5% per year.
The investment will have almost doubled in value after?
A. 11 years
B. 12 years
C. 13 years
D. 14 years
Answer: D
£2,000 is invested in a bank account. The account earns compound interest at 5% per year.
The investment will have almost doubled in value after?
A. 11 years
B. 12 years
C. 13 years
D. 14 years
Answer: D
Thursday, 6 August 2015
Cima C03 Exam Question No 19
Question No 19:
£2,000 is invested in a bank account. The account earns compound interest at 5% per year.
The cash value of the account, to the nearest £, at the end of five years will be?
A. £2,680
B. £2,553
C. £2,431
D. £2,335
Answer: B
£2,000 is invested in a bank account. The account earns compound interest at 5% per year.
The cash value of the account, to the nearest £, at the end of five years will be?
A. £2,680
B. £2,553
C. £2,431
D. £2,335
Answer: B
Subscribe to:
Comments (Atom)