The compound interest on a sum for 2 years at 5% is Rs. 102.50. Find the sum. MCQ with Answer and Explanation
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Question #1
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The effective annual rate for 5% per annum compounded quarterly is:
Correct Answer: Option C
Explanation:
Quarterly rate 1.25%, (1.0125)⁴ = 1.050945, effective = 5.0945% ≈ 5.09%.
Quarterly rate 1.25%, (1.0125)⁴ = 1.050945, effective = 5.0945% ≈ 5.09%.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money at compound interest amounts to Rs. 11520 in 2 years and Rs. 13824 in 3 years. Find the sum.
Correct Answer: Option B
Explanation:
Rate = (13824/11520 − 1) × 100 = 20%. P = 11520 / (1.2)² = 11520 / 1.44 = 8000.
Rate = (13824/11520 − 1) × 100 = 20%. P = 11520 / (1.2)² = 11520 / 1.44 = 8000.
This question belongs to:
Maths
Compound Interest
Question #3
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The difference between compound interest and simple interest on a sum for 2 years at 5% per annum is Rs. 25. The sum is:
Correct Answer: Option D
Explanation:
Difference = P × (r/100)² ⇒ 25 = P × 0.0025 ⇒ P = 10000.
Difference = P × (r/100)² ⇒ 25 = P × 0.0025 ⇒ P = 10000.
This question belongs to:
Maths
Compound Interest
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