Find the compound interest on Rs. 2000 at 4% per annum for 1 year compounded quarterly. MCQ with Answer and Explanation
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Question #1
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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
Question #2
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A sum of money amounts to Rs. 10816 in 2 years and Rs. 11248.64 in 3 years at compound interest. Find the sum.
Correct Answer: Option D
Explanation:
Rate = (11248.64/10816 − 1) × 100 = 4%. P = 10816 / (1.04)² = 10000.
Rate = (11248.64/10816 − 1) × 100 = 4%. P = 10816 / (1.04)² = 10000.
This question belongs to:
Maths
Compound Interest
Question #3
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A sum of money invested at compound interest amounts to Rs. 800 in 3 years and to Rs. 840 in 4 years. Find the rate of interest per annum.
Correct Answer: Option A
Explanation:
Interest earned in the 4th year = 840 - 800 = Rs. 40. Rate of interest = (Interest / Principal at start of year) * 100 = (40 / 800) * 100 = 5%.
Interest earned in the 4th year = 840 - 800 = Rs. 40. Rate of interest = (Interest / Principal at start of year) * 100 = (40 / 800) * 100 = 5%.
This question belongs to:
Maths
Compound Interest
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