Find the compound interest on Rs. 2000 at 10% per annum for 1.5 years compounded half-yearly. 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 6 years. In how many years will it become 8 times of itself?
Correct Answer: Option A
Explanation:
The sum becomes 2^1 times in 6 years. It will become 8 (2^3) times in 3 * 6 = 18 years.
The sum becomes 2^1 times in 6 years. It will become 8 (2^3) times in 3 * 6 = 18 years.
This question belongs to:
Maths
Compound Interest
Question #2
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The population of a village increases at 5% per annum. If the present population is 4410, what was it 2 years ago?
Correct Answer: Option C
Explanation:
Population 2 years ago = 4410 / (1.05)² = 4410 / 1.1025 = 4000.
Population 2 years ago = 4410 / (1.05)² = 4410 / 1.1025 = 4000.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 1025. What would be the simple interest on the same sum at the same rate for the same time?
Correct Answer: Option C
Explanation:
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 1025 => 1% of sum = 100. Simple Interest = 10% of sum = 10 * 100 = Rs. 1000.
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 1025 => 1% of sum = 100. Simple Interest = 10% of sum = 10 * 100 = Rs. 1000.
This question belongs to:
Maths
Compound Interest
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