The compound interest on a certain sum for 2 years at 5% per annum is Rs. 820. Find the principal sum. MCQ with Answer and Explanation
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Question #1
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A sum of money at compound interest amounts to Rs. 14520 in 2 years and to Rs. 15972 in 3 years. Find the sum.
Correct Answer: Option D
Explanation:
Rate = (15972/14520 − 1) × 100 = 10%. P = 14520 / (1.1)² = 14520 / 1.21 = 12000.
Rate = (15972/14520 − 1) × 100 = 10%. P = 14520 / (1.1)² = 14520 / 1.21 = 12000.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money at compound interest becomes 8 times in 3 years. The rate of interest is:
Correct Answer: Option A
Explanation:
(1+r)³ = 8 ⇒ 1+r = 2 ⇒ r = 100%.
(1+r)³ = 8 ⇒ 1+r = 2 ⇒ r = 100%.
This question belongs to:
Maths
Compound Interest
Question #3
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What is the compound interest on Rs. 10000 for 1 year at 16% per annum, compounded half-yearly?
Correct Answer: Option D
Explanation:
Half-yearly rate = 16/2 = 8%. Time = 2 half-years. Amount = 10000 * (1 + 8/100)^2 = 10000 * 1.1664 = Rs. 11664. Compound Interest = 11664 - 10000 = Rs. 1664.
Half-yearly rate = 16/2 = 8%. Time = 2 half-years. Amount = 10000 * (1 + 8/100)^2 = 10000 * 1.1664 = Rs. 11664. Compound Interest = 11664 - 10000 = Rs. 1664.
This question belongs to:
Maths
Compound Interest
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