In how many years will Rs. 900 amount to Rs. 1089 at 10% per annum compound interest? MCQ with Answer and Explanation
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Question #1
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Find the compound interest on Rs. 15625 for 9 months at 16% per annum, compounded quarterly.
Correct Answer: Option C
Explanation:
Quarterly rate = 16 / 4 = 4%. Time = 9 months = 3 quarters. Amount = 15625 * (1 + 4/100)^3 = 15625 * (26/25)^3 = 15625 * (17576 / 15625) = Rs. 17576. Compound Interest = 17576 - 15625 = Rs. 1951.
Quarterly rate = 16 / 4 = 4%. Time = 9 months = 3 quarters. Amount = 15625 * (1 + 4/100)^3 = 15625 * (26/25)^3 = 15625 * (17576 / 15625) = Rs. 17576. Compound Interest = 17576 - 15625 = Rs. 1951.
This question belongs to:
Maths
Compound Interest
Question #2
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At what rate percent compound interest will Rs. 4000 amount to Rs. 4630.50 in 3 years?
Correct Answer: Option A
Explanation:
4000(1+r)³ = 4630.50 ⇒ (1+r)³ = 1.157625 = (1.05)³ ⇒ r = 5%.
4000(1+r)³ = 4630.50 ⇒ (1+r)³ = 1.157625 = (1.05)³ ⇒ r = 5%.
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 4% per annum is Rs. 102, find the simple interest on the same sum at the same rate for the same period.
Correct Answer: Option A
Explanation:
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Simple interest rate = 4 * 2 = 8%. Given 8.16% of sum = 102, then 8% of sum = (102 / 8.16) * 8 = 12.5 * 8 = Rs. 100.
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Simple interest rate = 4 * 2 = 8%. Given 8.16% of sum = 102, then 8% of sum = (102 / 8.16) * 8 = 12.5 * 8 = Rs. 100.
This question belongs to:
Maths
Compound Interest
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