A sum of money at compound interest amounts to Rs. 14520 in 2 years and to Rs. 15972 in 3 years. Find the sum. MCQ with Answer and Explanation
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Question #1
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A sum of money placed at compound interest becomes double of itself in 5 years. In how many years will it become 8 times of itself?
Correct Answer: Option C
Explanation:
The sum becomes 2^1 times in 5 years. It will become 8 (2^3) times in 3 * 5 = 15 years.
The sum becomes 2^1 times in 5 years. It will become 8 (2^3) times in 3 * 5 = 15 years.
This question belongs to:
Maths
Compound Interest
Question #2
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What is the compound interest on Rs. 10000 for 1 year at 20% per annum, compounded half-yearly?
Correct Answer: Option C
Explanation:
Half-yearly rate = 20/2 = 10%. Time = 2 half-years. Amount = 10000 * (1 + 10/100)^2 = 10000 * 1.21 = Rs. 12100. Compound Interest = 12100 - 10000 = Rs. 2100.
Half-yearly rate = 20/2 = 10%. Time = 2 half-years. Amount = 10000 * (1 + 10/100)^2 = 10000 * 1.21 = Rs. 12100. Compound Interest = 12100 - 10000 = Rs. 2100.
This question belongs to:
Maths
Compound Interest
Question #3
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The effective rate of interest for 6% per annum compounded half-yearly is:
Correct Answer: Option D
Explanation:
Effective rate = (1.03)² − 1 = 1.0609 − 1 = 6.09%.
Effective rate = (1.03)² − 1 = 1.0609 − 1 = 6.09%.
This question belongs to:
Maths
Compound Interest
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