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Corporate Finance · Quiz 1 · 23 Feb 2025 · January 2025 term

Question 20: You believe in the power of compounding and decide to sa…

Question 20

+4 marksOne correct option

You believe in the power of compounding and decide to save Rs 100 per day by avoiding consumption of junk food. You deposit Rs 100 at the end of each day in a bank account that pays 3.65% annual interest rate compounded daily. How much money will you have in 2 years, assuming 365 days per year (use banking convention: daily interest rate = r/365, round off to the nearest integer)?

  1. A

    Rs 73,000

  2. B

    Rs 75,727

  3. C

    Rs 81,234

  4. D

    Rs 85,000

Show answer

Correct answer

  • B

    Rs 75,727

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Question 20 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 23 Feb 2025, in the January 2025 term (IIT M DEGREE AN EXAM QDB2 23 Feb 2025). It carries 4 marks.

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