Tag: economics

Questions Related to economics

On the balance sheet of a company, the value of the asset bought through hire purchase will appear as:

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  1. Cost less depreciation to date less amount owing on hire purchase less interest owing

  2. Cost less amounts owing on hire purchase

  3. Cost less depreciation to date less amount owing on hire purchase

  4. Cost less depreciation to date

Show answer
Correct Option: D
Explanation:

The value of the asset bought through hire purchase will appear as cost less depreciation to date on the balance sheet of a company.

A option to buy a thing an agreement of hiring is called

installments banking business and commercial activities economics maths

  1. cash system

  2. instalment system

  3. hire purchase system

  4. credit system

Show answer
Correct Option: C
Explanation:

A option to buy a thing an agreement of hiring is called hire purchase system.

The company offers a heater whose cost price is Rs. $9400$ at a monthly E.M.I for $24$ months. The interest charged is $6\%$. What is the monthly EMI to be paid by the customer?

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  1. Rs. $340$

  2. Rs. $512$

  3. Rs. $439$

  4. Rs. $604$

Show answer
Correct Option: C
Explanation:

$\Rightarrow$   We know, $EMI=\dfrac{Cost\, price+Interest}{Months}$


$\Rightarrow$   $T=24\,months=2\,years,\, R=6\%\,$ and $P=Rs.9400$.


$\Rightarrow$   $Interest = \dfrac{P\times R\times T}{100}=\dfrac{9400\times 6\times 2}{100}$

$\Rightarrow$   $Interest = Rs.1128.$


$\Rightarrow$   $EMI=\dfrac{9400+1128}{24}=Rs.438.66\approx Rs.439.$

Following are the details for purchasing a mobile phone:
Selling Price $=$ Rs. $15,600$
Initial Payment $=25\%$
Rate of Interest $= 10\%$
Processing Fee $=2\%$
Period $=12$ months
Calculate the total amount (in Rs.) that will be paid by the customer for the mobile phone.

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  1. $15600$

  2. $17082$

  3. $16390$

  4. $16770$

Show answer
Correct Option: B
Explanation:

$\Rightarrow$  Selling price of mobile phone is $Rs.15,600.$

$\Rightarrow$  Initial payment = $25\%\,\, of Rs.15,600.$
$\Rightarrow$  Initial payment = $\dfrac{25}{100}\times 15600=Rs.3900.$
$\Rightarrow$  Loan amount = Selling price - Initial payment.
$\Rightarrow$  Loan amount = $Rs.15,600-Rs.3,900=Rs.11,700.$

$\Rightarrow$  $Interest=\dfrac{11700\times 10\times 1}{100}=Rs.1170.$

$\Rightarrow$  Processing fee = $2\%\,\,of\,Rs.15600.$
$\Rightarrow$  Processing fee = $\dfrac{2}{100}\times 15600=Rs.312.$
$\Rightarrow$  Total amount paid = Selling price + Interest + Processing fee.
$\Rightarrow$  Toatal amount paid = $Rs.15600+Rs.1170+Rs.312=Rs.17082.$

The hirer pays an initial payment known as

installments banking business and commercial activities economics maths

  1. individual payment

  2. up payment

  3. down payment

  4. install payment

Show answer
Correct Option: C
Explanation:

The hirer pays an initial payment known as down payment.

The cost of a TV is Rs. $36{,}000$. Manoj decides to pay it in $8$ instalments at $12\%$ simple interest p.a. Calculate his monthly E.M.I and the total amount paid by him.

installments banking business and commercial activities economics maths

  1. Rs. $5{,}040$, Rs. $40{,}320$

  2. Rs. $3{,}240$, Rs. $40{,}320$

  3. Rs. $3{,}240$, Rs. $38{,}880$

  4. Rs. $4{,}860$, Rs. $38{,}880$

Show answer
Correct Option: A
Explanation:

$\Rightarrow$  Cost of T.V is $Rs.36,000$

$\Rightarrow$  So, $P=Rs.36,000,\,T=1\,year$ and $R=12\%$

$\Rightarrow$  $I=\dfrac{P\times R\times T}{100}=\dfrac{36000\times 12\times 1}{100}=Rs.4320$

$\Rightarrow$  Total amount paid by Manoj = Cost price + Interest = $Rs.36,000+4,320=Rs.40,320$.
$\Rightarrow$  $E.M.I=\dfrac{40320}{8}=Rs.5,040$
$\therefore$   Manoj monthly E.M.I is $Rs.5,040$ and total amount of T.V is $Rs.40,320.$

Volkswagen decides to sell its best-selling car under following different schemes:

Scheme Selling Price InitialPayment ProcessingFee Rate ofInterest Duration
$80\%$ Finance Rs. $4{,}00{,}000$ $20\%$ $0.5\%$ $10\%$ $2$ years
$100\%$ Finance Rs. $4{,}00{,}000$ $0\%$ $1\%$ $12.5\%$ $1$ years
$0\%$ Interest Rs. $4{,}00{,}000$ $3$ EMIsin advance $1\%$ $0\%$ $2$ years


What is the total amount that need to be paid in the $100\%$ Finance Scheme?

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  1. Rs. $4{,}34{,}000$

  2. Rs. $4{,}67{,}000$

  3. Rs. $4{,}54{,}000$

  4. Rs. $4{,}27{,}000$

Show answer
Correct Option: C
Explanation:

For $100\%$ finance scheme:


$\text{Processing fee=1% of 4,00,000=Rs. 4,000}$

$\text{Initial payments=0%=0}$

$SI=\dfrac{PRT}{100}=\dfrac{4,00,000\times 12.5\times 1}{100}=Rs.\ 50,000$

Hence, total amount that need to be paid is

$Rs.\ (4,00,000+50,000+4,000)=Rs.\ 4,54,000$

Ramu buys a watch whose cost is Rs. $9{,}000$. He decides to pay Rs. $825$ monthly for a period of $12$ months. Calculate the rate of interest charged.

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  1. $12\%$

  2. $5\%$

  3. $10\%$

  4. $15\%$

Show answer
Correct Option: C
Explanation:

Here, $P=$ Rs. $9,000,\,T=12$ months $=1$ year and $E.M.I.=$ Rs. $825$.

$\Rightarrow$  $I=\dfrac{P\times R\times T}{100}=\dfrac{9000\times R\times 1}{100}=90R.$
$\Rightarrow$  $E.M.I.=\dfrac{P+I}{\text{Months}}$
$\Rightarrow$  $825=\dfrac{9000+90R}{12}$
$\Rightarrow$   $825\times 12=9000+90R$
$\Rightarrow$   $9900=9000+90R$
$\Rightarrow$  $90R=900$
Thus $R=\dfrac{900}{90}=10\%$

Meena decides to buy a laptop by paying Rs. $2600$ at $12\%$ simple interest p.a. for $24$ months. The company charges a processing fee of $1\%$ for this scheme. Calculate the selling price of the laptop.

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  1. Rs. $45{,}882$

  2. Rs. $39{,}264$

  3. Rs. $48{,}629$

  4. Rs. $42{,}162$

Show answer
Correct Option: D
Explanation:

$P _{total}=Rs.2600+1\%\ of\ 2600=Rs.2626$

$\cfrac { P _{total}\times r\times t }{ 100 } $
$\cfrac { 2626\times 12\times 2 }{ 100 }=630.24 $
S.P amount $=S.I+P _{total}=630.24+2626=Rs.3256.24$

$pH$ of the rain is increased in heavy industrial area due to:

economics environment pollution strategies to control environmental pollution strategies to control pollution strategies to control environmental pollution and green chemistry

  1. acid rain

  2. land pollution

  3. water pollution

  4. none of the above

Show answer
Correct Option: A
Explanation:

Acid rain is the emission of oxides of sulphur and nitrogen in the atmosphere. This includes burning of fossil fuels containing sulphur and nitrogenous matter (such as coal and oil in furnaces and power stations, petrol and diesel in automobiles). 
Due to increase in acid gases in rain, the pH will change due to acid rain.