What is the compound interest on Rs. 10000 for 1 year at 16% per annum, compounded half-yearly? MCQ with Answer and Explanation
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Question #1
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A machine depreciates at 5% per annum. Its present value is Rs. 5415. What was its value 2 years ago?
Correct Answer: Option B
Explanation:
Value 2 years ago = 5415 / (0.95)² = 5415 / 0.9025 = 6000.
Value 2 years ago = 5415 / (0.95)² = 5415 / 0.9025 = 6000.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money invested at compound interest doubles itself in 16 years. In how many years will it become 4 times of itself?
Correct Answer: Option C
Explanation:
The sum doubles (2^1) in 16 years. It will become 4 (2^2) times in 2 * 16 = 32 years.
The sum doubles (2^1) in 16 years. It will become 4 (2^2) times in 2 * 16 = 32 years.
This question belongs to:
Maths
Compound Interest
Question #3
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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.
Correct Answer: Option C
Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 122 = P * (5/100)^2 * (3 + 5/100) => 122 = P * (1/400) * (3.05) => 122 = P * (3.05 / 400) => P = (122 * 400) / 3.05 = 48800 / 3.05 = Rs. 16000.
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 122 = P * (5/100)^2 * (3 + 5/100) => 122 = P * (1/400) * (3.05) => 122 = P * (3.05 / 400) => P = (122 * 400) / 3.05 = 48800 / 3.05 = Rs. 16000.
This question belongs to:
Maths
Compound Interest
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