In how many years will Rs. 1200 amount to Rs. 1389.15 at 5% compound interest? MCQ with Answer and Explanation
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Question #1
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The effective annual rate for 5% per annum compounded quarterly is:
Correct Answer: Option B
Explanation:
Quarterly rate 1.25%, (1.0125)⁴ = 1.050945, effective = 5.0945% ≈ 5.09%.
Quarterly rate 1.25%, (1.0125)⁴ = 1.050945, effective = 5.0945% ≈ 5.09%.
This question belongs to:
Maths
Compound Interest
Question #2
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The value of a machine depreciates at the rate of 10% per annum. If its present value is Rs. 162000, what was its value 2 years ago?
Correct Answer: Option D
Explanation:
Value 2 years ago = 162000 / (1 - 10/100)^2 = 162000 / (0.9)^2 = 162000 / 0.81 = Rs. 200000.
Value 2 years ago = 162000 / (1 - 10/100)^2 = 162000 / (0.9)^2 = 162000 / 0.81 = Rs. 200000.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on Rs. 1250 at 8% per annum for 2 years is:
Correct Answer: Option D
Explanation:
A = 1250 × (1.08)² = 1250 × 1.1664 = 1458, CI = 1458 − 1250 = Rs. 208.
A = 1250 × (1.08)² = 1250 × 1.1664 = 1458, CI = 1458 − 1250 = Rs. 208.
This question belongs to:
Maths
Compound Interest
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