The compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 410. What would be the simple interest on the same sum at the same rate for the same time? MCQ with Answer and Explanation
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Question #1
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A sum of money placed at compound interest doubles itself in 5 years. In how many years will it amount to eight times itself?
Correct Answer: Option C
Explanation:
A sum becomes 2 times in 5 years. It will become 4 (2^2) times in 2 * 5 = 10 years. It will become 8 (2^3) times in 3 * 5 = 15 years.
A sum becomes 2 times in 5 years. It will become 4 (2^2) times in 2 * 5 = 10 years. It will become 8 (2^3) times in 3 * 5 = 15 years.
This question belongs to:
Maths
Compound Interest
Question #2
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At what rate percent per annum will Rs. 8000 amount to Rs. 8820 in 2 years, compound interest compounded annually?
Correct Answer: Option B
Explanation:
Amount/Principal = 8820 / 8000 = 882 / 800 = 441 / 400 = (21 / 20)^2. Therefore, 1 + R/100 = 21/20 => R/100 = 1/20 => R = 5%.
Amount/Principal = 8820 / 8000 = 882 / 800 = 441 / 400 = (21 / 20)^2. Therefore, 1 + R/100 = 21/20 => R/100 = 1/20 => R = 5%.
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 12% per annum, compounded half-yearly?
Correct Answer: Option D
Explanation:
Half-yearly rate = 12/2 = 6%. Time = 2 half-years. Amount = 10000 * (1 + 6/100)^2 = 10000 * 1.1236 = Rs. 11236. Compound Interest = 11236 - 10000 = Rs. 1236.
Half-yearly rate = 12/2 = 6%. Time = 2 half-years. Amount = 10000 * (1 + 6/100)^2 = 10000 * 1.1236 = Rs. 11236. Compound Interest = 11236 - 10000 = Rs. 1236.
This question belongs to:
Maths
Compound Interest
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