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Home Aptitude Compound Interest See What Others Are Saying!
  • Question
  • Payments of $2000 and $1000 were originally scheduled to be paid one year and five years, respectively, from today. They are to be replaced by a $1500 payment due four years from today, and another payment due two years from today. The replacement stream must be economically equivalent to the scheduled stream. What is the unknown payment, if money can earn 7% compounded semiannually?


  • Options
  • A. 1548
  • B. 1348
  • C. 1648
  • D. 1748

  • Correct Answer
  • 1648 

    Explanation

    FV1 = Future value of $2000, 1 year later
    = PV (1+  i)^n


  • More questions

    • 1. 
      If a : b = 2 : 3 and 2 : a =1 : 2, then the value of 'b' is?

    • Options
    • A. 4
    • B. 6
    • C. 1 / 3
    • D. 3 / 2
    • Discuss
    • 2. 
      0.6 of a number equals 0.09 of another number. The ratio of the number is?

    • Options
    • A. 2 : 3
    • B. 1 : 15
    • C. 20 : 3
    • D. 3 : 20
    • Discuss
    • 3. 
      If a/3 = b/8, then ( a + 3 ) : ( b + 8 ) is equal to?

    • Options
    • A. 3 : 8
    • B. 8 : 3
    • C. 5 : 8
    • D. 3 : 5
    • Discuss
    • 4. 
      4, 19, 49,?, 229

    • Options
    • A. 75
    • B. 109
    • C. 65
    • D. 169
    • Discuss
    • 5. 
      777777 / 11 =?

    • Options
    • A. 7077
    • B. 70707
    • C. 7707
    • D. 7007
    • Discuss
    • 6. 
      Find the cardinal number of the following set {x: x is a natural number ? 30 and is divisible by 7 or 11}

    • Options
    • A. 4
    • B. 8
    • C. 6
    • D. 2
    • Discuss
    • 7. 
      SBI lent ? 1331 lakh to the TATA group at compound interest and got ?1728 lakh after 3 yr. What is the rate of interest charged, if compounded annually?

    • Options
    • A. 11%
    • B. 9.09%
    • C. 12%
    • D. 8.33%
    • Discuss
    • 8. 
      The sum of two numbers is 10. Their product is 20. Find the sum of the reciprocals of the two numbers.

    • Options
    • A. 1
    • B. 3/5
    • C. 1/2
    • D. 11//6
    • Discuss
    • 9. 
      5 men and 6 women can earn ? 2160 in 4 days. 8 men and 10 women can earn ? 4400 in 5 days. In how many days can 4 men and 9 women earn ? 1800?

    • Options
    • A. 3
    • B. 4
    • C. 5
    • D. 6
    • Discuss
    • 10. 
      A train 110 metres long travels at 60 km/hr. How long does it take to cross a telegraph post?

    • Options
    • A. 5 sec.
    • B. 5.6 sec
    • C. 6.6 sec
    • D. 6.8 sec
    • Discuss


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