Find the compound interest on Rs. 75000 at 10% per annum for 2 years. 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 10% per annum is Rs. 840. Find the principal sum.
Correct Answer: Option B
Explanation:
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Given 21% of P = 840 => P = 840 / 0.21 = Rs. 4000.
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Given 21% of P = 840 => P = 840 / 0.21 = Rs. 4000.
This question belongs to:
Maths
Compound Interest
Question #2
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The compound interest on a certain sum for 2 years at 5% per annum is Rs. 410. Find the principal sum.
Correct Answer: Option B
Explanation:
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Given 10.25% of P = 410 => P = 410 / 0.1025 = Rs. 4000.
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Given 10.25% of P = 410 => P = 410 / 0.1025 = Rs. 4000.
This question belongs to:
Maths
Compound Interest
Question #3
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The effective annual rate for 20% per annum compounded half-yearly is:
Correct Answer: Option A
Explanation:
Half-yearly rate 10%, (1.1)² = 1.21, effective = 21%.
Half-yearly rate 10%, (1.1)² = 1.21, effective = 21%.
This question belongs to:
Maths
Compound Interest
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