The difference between simple interest and compound interest on a certain sum of money for 2 years at 4% per annum is Rs. 64. Find the sum. MCQ with Answer and Explanation
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Question #1
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Find the compound interest on Rs. 20000 for 1 year at 8% per annum, compounded quarterly.
Correct Answer: Option A
Explanation:
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 20000 * (1 + 2/100)^4 = 20000 * (1.02)^4 = 20000 * 1.08243216 = Rs. 21648.64. Compound Interest = 21648.64 - 20000 = Rs. 1648.64.
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 20000 * (1 + 2/100)^4 = 20000 * (1.02)^4 = 20000 * 1.08243216 = Rs. 21648.64. Compound Interest = 21648.64 - 20000 = Rs. 1648.64.
This question belongs to:
Maths
Compound Interest
Question #2
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The effective rate of interest for 8% per annum compounded half-yearly is:
Correct Answer: Option D
Explanation:
Effective = (1.04)² − 1 = 1.0816 − 1 = 8.16%.
Effective = (1.04)² − 1 = 1.0816 − 1 = 8.16%.
This question belongs to:
Maths
Compound Interest
Question #3
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In how many years will a sum of Rs. 1600 amount to Rs. 1852.20 at 5% compound interest?
Correct Answer: Option A
Explanation:
1600(1.05)^t = 1852.20 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.
1600(1.05)^t = 1852.20 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.
This question belongs to:
Maths
Compound Interest
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