The compound interest on a certain sum of money for 2 years at 8% per annum is Rs. 832. 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 4 years. In how many years will it amount to 8 times itself?
Correct Answer: Option C
Explanation:
2 times in 4 years, 8 = 2³ ⇒ 4 × 3 = 12 years.
2 times in 4 years, 8 = 2³ ⇒ 4 × 3 = 12 years.
This question belongs to:
Maths
Compound Interest
Question #2
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The difference between compound interest and simple interest on a sum for 2 years at 10% is Rs. 50. The sum is:
Correct Answer: Option B
Explanation:
D = P × (10/100)² = P × 0.01 = 50 ⇒ P = 5000.
D = P × (10/100)² = P × 0.01 = 50 ⇒ P = 5000.
This question belongs to:
Maths
Compound Interest
Question #3
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The value of a machine depreciates at the rate of 10% per annum. If its present value is Rs. 162000, what was its value 2 years ago?
Correct Answer: Option C
Explanation:
Value 2 years ago = 162000 / (1 - 10/100)^2 = 162000 / (0.9)^2 = 162000 / 0.81 = Rs. 200000.
Value 2 years ago = 162000 / (1 - 10/100)^2 = 162000 / (0.9)^2 = 162000 / 0.81 = Rs. 200000.
This question belongs to:
Maths
Compound Interest
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