The compound interest on Rs. 500 for 2 years at 4% per annum is: MCQ with Answer and Explanation
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Question #1
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Find the compound interest on Rs. 10000 for 1 year at 12% per annum, compounded quarterly.
Correct Answer: Option D
Explanation:
Quarterly rate = 12 / 4 = 3%. Time = 4 quarters. Amount = 10000 * (1 + 3/100)^4 = 10000 * (1.03)^4 = 10000 * 1.12550881 = Rs. 11255.09. Compound Interest = 11255.09 - 10000 = Rs. 1255.09.
Quarterly rate = 12 / 4 = 3%. Time = 4 quarters. Amount = 10000 * (1 + 3/100)^4 = 10000 * (1.03)^4 = 10000 * 1.12550881 = Rs. 11255.09. Compound Interest = 11255.09 - 10000 = Rs. 1255.09.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money placed at compound interest becomes double of itself in 10 years. In how many years will it become 8 times of itself?
Correct Answer: Option A
Explanation:
The sum becomes 2^1 times in 10 years. It will become 8 (2^3) times in 3 * 10 = 30 years.
The sum becomes 2^1 times in 10 years. It will become 8 (2^3) times in 3 * 10 = 30 years.
This question belongs to:
Maths
Compound Interest
Question #3
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The difference between simple interest and compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 121. Find the sum.
Correct Answer: Option C
Explanation:
Difference for 2 years = P * (R/100)^2 => 121 = P * (10/100)^2 => 121 = P * 0.01 => P = Rs. 12100.
Difference for 2 years = P * (R/100)^2 => 121 = P * (10/100)^2 => 121 = P * 0.01 => P = Rs. 12100.
This question belongs to:
Maths
Compound Interest
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