In how many years will Rs. 800 amount to Rs. 968 at 10% per annum compound interest? MCQ with Answer and Explanation
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Question #1
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A sum of money becomes 1.44 times in 2 years at compound interest. The rate of interest is:
Correct Answer: Option D
Explanation:
(1+r)² = 1.44 ⇒ 1+r = 1.2 ⇒ r = 20%.
(1+r)² = 1.44 ⇒ 1+r = 1.2 ⇒ r = 20%.
This question belongs to:
Maths
Compound Interest
Question #2
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The compound interest on a sum for 2 years at 10% compounded half-yearly is Rs. 215.50. The sum is:
Correct Answer: Option D
Explanation:
Half-yearly rate 5%, n=4. CI = P[(1.05)⁴ − 1] = P × 0.21550625 = 215.50 ⇒ P = 215.50 / 0.21550625 = 1000.
Half-yearly rate 5%, n=4. CI = P[(1.05)⁴ − 1] = P × 0.21550625 = 215.50 ⇒ P = 215.50 / 0.21550625 = 1000.
This question belongs to:
Maths
Compound Interest
Question #3
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If the compound interest on a certain sum for 2 years at 12% per annum is Rs. 1590, find the simple interest on the same sum at the same rate for the same period.
Correct Answer: Option D
Explanation:
Effective compound interest rate = 12 + 12 + (1212)/100 = 25.44%. Simple interest rate = 12 * 2 = 24%. Given 25.44% of sum = 1590 => Sum = 1590 / 0.2544 = Rs. 6250. Simple Interest = 24% of 6250 = Rs. 1500.
Effective compound interest rate = 12 + 12 + (1212)/100 = 25.44%. Simple interest rate = 12 * 2 = 24%. Given 25.44% of sum = 1590 => Sum = 1590 / 0.2544 = Rs. 6250. Simple Interest = 24% of 6250 = Rs. 1500.
This question belongs to:
Maths
Compound Interest
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