The difference between simple interest and compound interest on a certain sum of money for 2 years at 4% per annum is Rs. 16. Find the sum. MCQ with Answer and Explanation
Question
Report Error
Discuss this Question (0)
Practice More Compound Interest Questions
Question #1
Report Error
What is the compound interest on Rs. 10000 for 1 year at 20% per annum, compounded half-yearly?
Correct Answer: Option D
Explanation:
Half-yearly rate = 20/2 = 10%. Time = 2 half-years. Amount = 10000 * (1 + 10/100)^2 = 10000 * 1.21 = Rs. 12100. Compound Interest = 12100 - 10000 = Rs. 2100.
Half-yearly rate = 20/2 = 10%. Time = 2 half-years. Amount = 10000 * (1 + 10/100)^2 = 10000 * 1.21 = Rs. 12100. Compound Interest = 12100 - 10000 = Rs. 2100.
This question belongs to:
Maths
Compound Interest
Question #2
Report Error
A sum of money invested at compound interest doubles itself in 7 years. In how many years will it become 8 times of itself?
Correct Answer: Option B
Explanation:
The sum doubles (2^1) in 7 years. It will become 8 (2^3) times in 3 * 7 = 21 years.
The sum doubles (2^1) in 7 years. It will become 8 (2^3) times in 3 * 7 = 21 years.
This question belongs to:
Maths
Compound Interest
Question #3
Report Error
The effective annual rate for 15% per annum compounded half-yearly is:
Correct Answer: Option C
Explanation:
Half-yearly rate 7.5%, (1.075)² = 1.155625, effective = 15.5625% ≈ 15.56%.
Half-yearly rate 7.5%, (1.075)² = 1.155625, effective = 15.5625% ≈ 15.56%.
This question belongs to:
Maths
Compound Interest
No comments yet. Be the first to start the discussion!