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Corporate Finance · Quiz 1 · 27 Oct 2024 · September 2024 term

Question 17: You believe in the power of compounding and decide to sa…

Question 17

+4 marksOne correct option

You believe in the power of compounding and decide to save Rs 100 per day by avoiding the junk foods. You deposit the Rs 100 at the end of each day in a bank account that pays 8% annual interest compounded daily. How much money will you have in 5 years, assuming 365 days per years?
(use banking convention: daily interest rate = r/365) (Rounded off to the nearest integer)

  1. A

    Rs 182,500

  2. B

    Rs 214,131

  3. C

    Rs 224,365

  4. D

    Rs 254,689

Show answer

Correct answer

  • C

    Rs 224,365

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Question 17 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 27 Oct 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB2 27 Oct 2024). It carries 4 marks.

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