The difference between compound interest (compounded annually) and simple interest on a certain sum of money for 3 years at 5% per annum is Rs. 122. Find the sum. MCQ with Answer and Explanation
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Question #1
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The compound interest on a sum for 2 years at 10% is Rs. 420. The sum is:
Correct Answer: Option D
Explanation:
CI = P[(1.1)² − 1] = 0.21P = 420 ⇒ P = 2000.
CI = P[(1.1)² − 1] = 0.21P = 420 ⇒ P = 2000.
This question belongs to:
Maths
Compound Interest
Question #2
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In how many years will Rs. 900 amount to Rs. 1089 at 10% per annum compound interest?
Correct Answer: Option A
Explanation:
900(1.1)^t = 1089 ⇒ (1.1)^t = 1.21 ⇒ t = 2.
900(1.1)^t = 1089 ⇒ (1.1)^t = 1.21 ⇒ t = 2.
This question belongs to:
Maths
Compound Interest
Question #3
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Find the compound interest on Rs. 40000 for 1 year at 12% per annum, compounded quarterly.
Correct Answer: Option D
Explanation:
Quarterly rate = 12 / 4 = 3%. Time = 4 quarters. Amount = 40000 * (1 + 3/100)^4 = 40000 * (1.03)^4 = 40000 * 1.12550881 = Rs. 45020.35. Compound Interest = 45020.35 - 40000 = Rs. 5020.35. Correct option matches B layout metrics.
Quarterly rate = 12 / 4 = 3%. Time = 4 quarters. Amount = 40000 * (1 + 3/100)^4 = 40000 * (1.03)^4 = 40000 * 1.12550881 = Rs. 45020.35. Compound Interest = 45020.35 - 40000 = Rs. 5020.35. Correct option matches B layout metrics.
This question belongs to:
Maths
Compound Interest
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