The difference between compound interest and simple interest on a sum for 2 years at 10% is Rs. 50. The sum 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 B
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 at compound interest becomes 2.25 times in 2 years. In how many years will it become 5.0625 times?
Correct Answer: Option D
Explanation:
2.25 = (1.5)², so rate 50%. 5.0625 = 2.25², so 4 years. Or 2.25 times in 2 years, 5.0625 = (2.25)², so time 2×2=4.
2.25 = (1.5)², so rate 50%. 5.0625 = 2.25², so 4 years. Or 2.25 times in 2 years, 5.0625 = (2.25)², so time 2×2=4.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 615. What would be the simple interest on the same sum at the same rate for the same time?
Correct Answer: Option D
Explanation:
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 615 => 1% of sum = 60. Simple Interest = 10% of sum = 10 * 60 = Rs. 600.
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 615 => 1% of sum = 60. Simple Interest = 10% of sum = 10 * 60 = Rs. 600.
This question belongs to:
Maths
Compound Interest
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