A machine depreciates at 5% per annum. Its present value is Rs. 5415. What was its value 2 years ago? MCQ with Answer and Explanation
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Question #1
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The difference between simple interest and compound interest on a certain sum of money for 2 years at 4% per annum is Rs. 16. Find the sum.
Correct Answer: Option D
Explanation:
Difference for 2 years = P * (R/100)^2 => 16 = P * (4/100)^2 => 16 = P * (16 / 10000) => P = Rs. 10000.
Difference for 2 years = P * (R/100)^2 => 16 = P * (4/100)^2 => 16 = P * (16 / 10000) => P = Rs. 10000.
This question belongs to:
Maths
Compound Interest
Question #2
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The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs. 155. Find the sum.
Correct Answer: Option C
Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 155 = P * (10/100)^2 * (3 + 10/100) => 155 = P * (1/100) * (3.1) => 155 = P * 0.031 => P = 155 / 0.031 = Rs. 5000.
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 155 = P * (10/100)^2 * (3 + 10/100) => 155 = P * (1/100) * (3.1) => 155 = P * 0.031 => P = 155 / 0.031 = Rs. 5000.
This question belongs to:
Maths
Compound Interest
Question #3
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Find the compound interest on Rs. 75000 at 10% per annum for 2 years.
Correct Answer: Option B
Explanation:
A = 75000 × (1.1)² = 75000 × 1.21 = 90750, CI = 90750 − 75000 = Rs. 15750.
A = 75000 × (1.1)² = 75000 × 1.21 = 90750, CI = 90750 − 75000 = Rs. 15750.
This question belongs to:
Maths
Compound Interest
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