Master Plumbing – Arithmetic- Questions With Complete Solutions

Interest correct answer: amount of money earned for the use of the borrowed capital; (borrower) amount of money paid for the capital; (lender) income generated by the capital which he lent Simple Interest correct answer: interest where only the original principal bears interest which varies directly with time Ordinary simple interest correct answer: computed on the basis of the banker's year 1 year = 12 mos. 1 mo. = 30 days 1 year = 360 days Exact Simple Interest correct answer: based on the actual number of days in a year Compound Interest correct answer: interest is earned by the principal at each compounding period is added to the principal that earns another interest in the next period Single-Payment Compound-Amount Factor correct answer: (1+i)^n Single-Payment-present-worth factor correct answer: 1/[(1+i)^n] Continuous Compounding correct answer: when the number of interest periods per year approaches infinity Annuity correct answer: series of equal payments made at equal intervals of time (installment payments, monthly rentals, insurance premiums, etc.) Annuity Certain correct answer: specific amount payments are set to begin and end at a specific length of time or the amount and number of payments are known Annuity uncertain correct answer: annuitant may be paid according to certain event where start of payment is not known and amount depends on an event Simple Annuity correct answer: the payment period is the same as the interest period General Annuity correct answer: payment interval is not the same as the interest period Effective Rate correct answer: the actual rate at which money grows per year Ordinary Annuity correct answer: the equal payments are made at the end of each compounding period starting from the first Annuity Due correct answer: an annuity whose payments occur at the beginning of each period starting from the first Deferred Annuity correct answer: An annuity that starts sometime in the future Perpetuity correct answer: payment period continues indefinitely or extends forever Ampere correct answer: a unit of electric current equal to a flow of one coulomb per second. Kelvin correct answer: The fraction 1/273.16 of the thermodynamic temperature of the triple point of water Candela correct answer: Unit for luminous intensity Mole correct answer: Unit for quantity of matter. The amount of substance of a system which contains as many elementary entities as there are atoms in 0.012 kilogram of C12 6400 mils correct answer: 1 revolution (mils) 400 grad correct answer: 1 revolution (grad)