In how many years will Rs. 2000 amount to Rs. 2420 at 10% per annum compound interest, compounded annually? MCQ with Answer and Explanation
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Question #1
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Find the compound interest on Rs. 4500 at 8% per annum for 2 years.
Correct Answer: Option C
Explanation:
A = 4500 × (1.08)² = 4500 × 1.1664 = 5248.80, CI = 5248.80 − 4500 = Rs. 748.80.
A = 4500 × (1.08)² = 4500 × 1.1664 = 5248.80, CI = 5248.80 − 4500 = Rs. 748.80.
This question belongs to:
Maths
Compound Interest
Question #2
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The compound interest on Rs. 20000 at 8% per annum for 1 year compounded half-yearly is:
Correct Answer: Option B
Explanation:
Half-yearly rate 4%, n=2. A = 20000 × (1.04)² = 20000 × 1.0816 = 21632, CI = 21632 − 20000 = Rs. 1632.
Half-yearly rate 4%, n=2. A = 20000 × (1.04)² = 20000 × 1.0816 = 21632, CI = 21632 − 20000 = Rs. 1632.
This question belongs to:
Maths
Compound Interest
Question #3
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The difference between simple interest and compound interest on a certain sum of money for 3 years at 20% per annum is Rs. 640. Find the sum.
Correct Answer: Option B
Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 640 = P * (20/100)^2 * (3 + 20/100) => 640 = P * (1/25) * (3.2) => 640 = P * 0.128 => P = 640 / 0.128 = Rs. 5000.
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 640 = P * (20/100)^2 * (3 + 20/100) => 640 = P * (1/25) * (3.2) => 640 = P * 0.128 => P = 640 / 0.128 = Rs. 5000.
This question belongs to:
Maths
Compound Interest
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