A sum of money at compound interest amounts to Rs. 11520 in 2 years and Rs. 13824 in 3 years. Find the sum. MCQ with Answer and Explanation
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Question #1
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What is the compound interest on Rs. 50000 for 1 year at 16% per annum, compounded half-yearly?
Correct Answer: Option A
Explanation:
Half-yearly rate = 16/2 = 8%. Time = 2 half-years. Amount = 50000 * (1 + 8/100)^2 = 50000 * 1.1664 = Rs. 58320. Compound Interest = 58320 - 50000 = Rs. 8320.
Half-yearly rate = 16/2 = 8%. Time = 2 half-years. Amount = 50000 * (1 + 8/100)^2 = 50000 * 1.1664 = Rs. 58320. Compound Interest = 58320 - 50000 = Rs. 8320.
This question belongs to:
Maths
Compound Interest
Question #2
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The effective annual rate for 7% per annum compounded half-yearly is:
Correct Answer: Option B
Explanation:
Half-yearly rate 3.5%, (1.035)² = 1.071225, effective = 7.1225% ≈ 7.12%.
Half-yearly rate 3.5%, (1.035)² = 1.071225, effective = 7.1225% ≈ 7.12%.
This question belongs to:
Maths
Compound Interest
Question #3
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Find the principal that yields a compound interest of Rs. 410 in 2 years at 5% per annum.
Correct Answer: Option A
Explanation:
CI = P[(1.05)² − 1] = P × 0.1025 = 410 ⇒ P = 410 / 0.1025 = 4000.
CI = P[(1.05)² − 1] = P × 0.1025 = 410 ⇒ P = 410 / 0.1025 = 4000.
This question belongs to:
Maths
Compound Interest
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