The difference between simple interest and compound interest on a certain sum of money for 3 years at 20% per annum is Rs. 640. 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 12% per annum, compounded quarterly.
Correct Answer: Option B
Explanation:
Quarterly rate = 12 / 4 = 3%. Time = 4 quarters. Amount = 20000 * (1 + 3/100)^4 = 20000 * (1.03)^4 = 20000 * 1.12550881 = Rs. 22510.18. Compound Interest = 22510.18 - 20000 = Rs. 2510.18.
Quarterly rate = 12 / 4 = 3%. Time = 4 quarters. Amount = 20000 * (1 + 3/100)^4 = 20000 * (1.03)^4 = 20000 * 1.12550881 = Rs. 22510.18. Compound Interest = 22510.18 - 20000 = Rs. 2510.18.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum amounts to Rs. 1331 in 3 years and Rs. 1464.10 in 4 years at compound interest. Find the sum.
Correct Answer: Option C
Explanation:
Rate = (1464.10/1331 − 1) × 100 = 10%. P = 1331 / (1.1)³ = 1331 / 1.331 = 1000.
Rate = (1464.10/1331 − 1) × 100 = 10%. P = 1331 / (1.1)³ = 1331 / 1.331 = 1000.
This question belongs to:
Maths
Compound Interest
Question #3
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The difference between CI and SI on Rs. 10000 for 2 years at 10% per annum is:
Correct Answer: Option C
Explanation:
Difference = P × (R/100)² = 10000 × 0.01 = Rs. 100.
Difference = P × (R/100)² = 10000 × 0.01 = Rs. 100.
This question belongs to:
Maths
Compound Interest
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