A sum of money at compound interest becomes 2.25 times in 2 years. In how many years will it become 5.0625 times? MCQ with Answer and Explanation
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Question #1
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If the compound interest on a sum for 2 years at 5% is Rs. 307.50, the simple interest on the same sum for 2 years at 5% is:
Correct Answer: Option A
Explanation:
CI = P × 0.1025 = 307.50 ⇒ P = 3000. SI = 3000 × 5 × 2 / 100 = Rs. 300.
CI = P × 0.1025 = 307.50 ⇒ P = 3000. SI = 3000 × 5 × 2 / 100 = Rs. 300.
This question belongs to:
Maths
Compound Interest
Question #2
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The difference between compound interest and simple interest on Rs. 12500 for 2 years is Rs. 20. Find the rate of interest per annum.
Correct Answer: Option B
Explanation:
Difference for 2 years = P * (R/100)^2 => 20 = 12500 * (R/100)^2 => 20 = 12500 * R^2 / 10000 => 20 = 1.25 * R^2 => R^2 = 20 / 1.25 = 16 => R = 4%.
Difference for 2 years = P * (R/100)^2 => 20 = 12500 * (R/100)^2 => 20 = 12500 * R^2 / 10000 => 20 = 1.25 * R^2 => R^2 = 20 / 1.25 = 16 => R = 4%.
This question belongs to:
Maths
Compound Interest
Question #3
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What sum will amount to Rs. 2420 in 2 years at 10% per annum compound interest?
Correct Answer: Option B
Explanation:
P = 2420 / (1.1)² = 2420 / 1.21 = 2000.
P = 2420 / (1.1)² = 2420 / 1.21 = 2000.
This question belongs to:
Maths
Compound Interest
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