A sum of money invested at compound interest amounts to Rs. 4624 in 2 years and to Rs. 4913 in 3 years. Find the rate of interest per annum. MCQ with Answer and Explanation
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Question #1
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What is the compound interest on Rs. 20000 for 1 year at 16% per annum, compounded half-yearly?
Correct Answer: Option C
Explanation:
Half-yearly rate = 16/2 = 8%. Time = 2 half-years. Amount = 20000 * (1 + 8/100)^2 = 20000 * 1.1664 = Rs. 23328. Compound Interest = 23328 - 20000 = Rs. 3328.
Half-yearly rate = 16/2 = 8%. Time = 2 half-years. Amount = 20000 * (1 + 8/100)^2 = 20000 * 1.1664 = Rs. 23328. Compound Interest = 23328 - 20000 = Rs. 3328.
This question belongs to:
Maths
Compound Interest
Question #2
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What sum will amount to Rs. 10816 in 2 years at 4% compound interest?
Correct Answer: Option D
Explanation:
P = 10816 / (1.04)² = 10816 / 1.0816 = 10000.
P = 10816 / (1.04)² = 10816 / 1.0816 = 10000.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on a certain sum for 2 years at 4% per annum is Rs. 816. Find the principal sum.
Correct Answer: Option B
Explanation:
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Given 8.16% of P = 816 => P = 816 / 0.0816 = Rs. 10000.
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Given 8.16% of P = 816 => P = 816 / 0.0816 = Rs. 10000.
This question belongs to:
Maths
Compound Interest
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