A sum of money amounts to Rs. 10584 in 2 years and Rs. 11113.20 in 3 years at compound interest. Find the sum. MCQ with Answer and Explanation
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Question #1
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Find the compound interest on Rs. 5000 at 12% per annum for 1 year, compounded half-yearly.
Correct Answer: Option A
Explanation:
For half-yearly compounding, New Rate = 12/2 = 6% per half-year, and Time = 2 half-years. Amount = 5000 * (1 + 6/100)^2 = 5000 * 1.1236 = Rs. 5618. Compound Interest = 5618 - 5000 = Rs. 618.
For half-yearly compounding, New Rate = 12/2 = 6% per half-year, and Time = 2 half-years. Amount = 5000 * (1 + 6/100)^2 = 5000 * 1.1236 = Rs. 5618. Compound Interest = 5618 - 5000 = Rs. 618.
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 2 years at 5% per annum is Rs. 36. Find the sum.
Correct Answer: Option D
Explanation:
Difference for 2 years = P * (R/100)^2 => 36 = P * (5/100)^2 => 36 = P * (25 / 10000) => P = (36 * 10000) / 25 = 14400.
Difference for 2 years = P * (R/100)^2 => 36 = P * (5/100)^2 => 36 = P * (25 / 10000) => P = (36 * 10000) / 25 = 14400.
This question belongs to:
Maths
Compound Interest
Question #3
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Find the compound interest on Rs. 30000 for 1 year at 8% per annum, compounded quarterly.
Correct Answer: Option A
Explanation:
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 30000 * (1 + 2/100)^4 = 30000 * (1.02)^4 = 30000 * 1.08243216 = Rs. 32472.96. Compound Interest = 32472.96 - 30000 = Rs. 2472.96.
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 30000 * (1 + 2/100)^4 = 30000 * (1.02)^4 = 30000 * 1.08243216 = Rs. 32472.96. Compound Interest = 32472.96 - 30000 = Rs. 2472.96.
This question belongs to:
Maths
Compound Interest
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