The compound interest on a certain sum for 2 years at 10% per annum is Rs. 840. Find the principal sum. 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 D
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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A sum of money at compound interest doubles in 7 years. In how many years will it become 8 times?
Correct Answer: Option D
Explanation:
Doubles in 7 years, 8 = 2³, so 7 × 3 = 21 years.
Doubles in 7 years, 8 = 2³, so 7 × 3 = 21 years.
This question belongs to:
Maths
Compound Interest
Question #3
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What sum will amount to Rs. 11576.25 in 2 years at 5% per annum compound interest?
Correct Answer: Option B
Explanation:
P = 11576.25 / 1.1025 = 10500.
P = 11576.25 / 1.1025 = 10500.
This question belongs to:
Maths
Compound Interest
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