The difference between simple interest and compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 25. Find the sum. MCQ with Answer and Explanation
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Question #1
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Find the compound interest on Rs. 10000 for 2 years at 4% per annum, the interest being compounded half-yearly.
Correct Answer: Option B
Explanation:
Half-yearly rate = 4/2 = 2%. Time = 2 years = 4 half-years. Amount = 10000 * (1 + 2/100)^4 = 10000 * (1.02)^4 = 10000 * 1.082432 = Rs. 10824.32. Compound Interest = 10824.32 - 10000 = Rs. 824.32.
Half-yearly rate = 4/2 = 2%. Time = 2 years = 4 half-years. Amount = 10000 * (1 + 2/100)^4 = 10000 * (1.02)^4 = 10000 * 1.082432 = Rs. 10824.32. Compound Interest = 10824.32 - 10000 = Rs. 824.32.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money at compound interest becomes 6 times in 4 years. In how many years will it become 216 times?
Correct Answer: Option B
Explanation:
216 = 6³, so 4 × 3 = 12 years.
216 = 6³, so 4 × 3 = 12 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 3 years at 10% per annum is Rs. 930. Find the sum.
Correct Answer: Option C
Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 930 = P * (10/100)^2 * (3 + 10/100) => 930 = P * (1/100) * (3.1) => 930 = P * 0.031 => P = 930 / 0.031 = Rs. 30000.
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 930 = P * (10/100)^2 * (3 + 10/100) => 930 = P * (1/100) * (3.1) => 930 = P * 0.031 => P = 930 / 0.031 = Rs. 30000.
This question belongs to:
Maths
Compound Interest
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