The compound interest on a certain sum for 2 years at 4% per annum is Rs. 1632. Find the principal sum. MCQ with Answer and Explanation

The compound interest on a certain sum for 2 years at 4% per annum is Rs. 1632. Find the principal sum.

A. Rs. 20000

B. Rs. 24000

C. Rs. 22000

D. Rs. 18000

Answer: Option A

Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Given 8.16% of P = 1632 => P = 1632 / 0.0816 = Rs. 20000.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

What is the effective annual rate of interest corresponding to a nominal rate of 6% per annum compounded half-yearly?

A. 6.06%

B. 6.15%

C. 6.09%

D. 6.12%

Correct Answer: Option C

Explanation:
Effective rate = (1 + 0.03)² − 1 = 1.0609 − 1 = 0.0609 = 6.09%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

At what rate percent per annum will Rs. 20000 amount to Rs. 24200 in 2 years, compound interest compounded annually?

A. 10%

B. 14%

C. 12%

D. 8%

Correct Answer: Option A

Explanation:
Amount/Principal = 24200 / 20000 = 121 / 100 = (11 / 10)^2. Therefore, 1 + R/100 = 11/10 => R/100 = 1/10 => R = 10%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The difference between CI and SI on Rs. 2300 for 2 years at 10% is:

A. Rs. 24

B. Rs. 21

C. Rs. 23

D. Rs. 22

Correct Answer: Option C

Explanation:
D = 2300 × 0.01 = Rs. 23.

This question belongs to: Maths Compound Interest