Question
Rahul secures a loan amounting to Rs. 8,800 from a bank,
which charges an annual simple interest rate of 20%. He then allocates this sum into an investment that yields an annual compound interest of 30%, compounded yearly. Calculate the profit Rahul achieves after two years.Solution
Amount paid to bank at the end of 2nd year = (8800 × 20 × 2)/100 + 8800 = Rs. 12320 Amount received from scheme = 8800 × (1.3)2 = Rs. 14872 Profit received by Rahul = 14872 – 12320 = Rs. 2552
Section 80EEB of the Income Tax Act provides deduction on:
The fundamental accounting equation, Assets = Liabilities + Equity, can be alternatively expressed as:
Which of the following is a phase of the business cycle?
A. Expansion
B. Recession
C. Peak
Which of the following wage systems does NOT provide an incentive for efficiency?
The matching of revenue and related expenses gives which of the following?
Deduction in respect of royalty income of authors under Chapter VI is allowed under Section:
Money market is a market for ___ (1) ___ funds having maturity of ___ (2) ___.
Company Y acquires 80% of Z for consideration ₹4,00,000. Fair value of identifiable net assets of Z = ₹3,50,000. Calculate goodwill on consolidation.
Under section 208, obligation to pay advance tax arises in every case where the advance tax payable is ______.
A project has initial investment ₹1,00,000 and expected cash inflows ₹30,000 each year for 5 years. Payback period is:
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