Find the compound interest on Rs. 5000 at 10% per annum compounded half-yearly for 1 year. MCQ with Answer and Explanation
Question
Report Error
Discuss this Question (0)
Practice More Compound Interest Questions
Question #1
Report Error
Find the compound interest on Rs. 10000 for 1 year at 8% per annum, compounded quarterly.
Correct Answer: Option B
Explanation:
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 10000 * (1 + 2/100)^4 = 10000 * (1.02)^4 = 10000 * 1.082432 = Rs. 10824.32. Compound Interest = 10824.32 - 10000 = Rs. 824.32.
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 10000 * (1 + 2/100)^4 = 10000 * (1.02)^4 = 10000 * 1.082432 = Rs. 10824.32. Compound Interest = 10824.32 - 10000 = Rs. 824.32.
This question belongs to:
Maths
Compound Interest
Question #2
Report Error
In what time will Rs. 5000 amount to Rs. 6050 at 10% per annum compound interest?
Correct Answer: Option B
Explanation:
5000(1.1)^t = 6050 ⇒ (1.1)^t = 1.21 = (1.1)² ⇒ t = 2.
5000(1.1)^t = 6050 ⇒ (1.1)^t = 1.21 = (1.1)² ⇒ t = 2.
This question belongs to:
Maths
Compound Interest
Question #3
Report Error
The compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 328. 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 = 328 => 1% of sum = 32. Simple Interest = 10% of sum = 10 * 32 = Rs. 320.
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 = 328 => 1% of sum = 32. Simple Interest = 10% of sum = 10 * 32 = Rs. 320.
This question belongs to:
Maths
Compound Interest
No comments yet. Be the first to start the discussion!