What is the compound interest on Rs. 20000 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 sum of money at compound interest becomes 2 times in 3 years. In how many years will it become 32 times?
Correct Answer: Option C
Explanation:
32 = 2⁵, so 3 × 5 = 15 years.
32 = 2⁵, so 3 × 5 = 15 years.
This question belongs to:
Maths
Compound Interest
Question #2
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If the compound interest on a certain sum for 2 years at 4% per annum is Rs. 102, find the simple interest on the same sum at the same rate for the same period.
Correct Answer: Option B
Explanation:
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Simple interest rate = 4 * 2 = 8%. Given 8.16% of sum = 102, then 8% of sum = (102 / 8.16) * 8 = 12.5 * 8 = Rs. 100.
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Simple interest rate = 4 * 2 = 8%. Given 8.16% of sum = 102, then 8% of sum = (102 / 8.16) * 8 = 12.5 * 8 = Rs. 100.
This question belongs to:
Maths
Compound Interest
Question #3
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Find the compound interest on Rs. 5000 at 10% per annum compounded half-yearly for 1 year.
Correct Answer: Option A
Explanation:
Half-yearly rate 5%, n=2. A = 5000 × (1.05)² = 5000 × 1.1025 = 5512.50, CI = 5512.50 − 5000 = Rs. 512.50.
Half-yearly rate 5%, n=2. A = 5000 × (1.05)² = 5000 × 1.1025 = 5512.50, CI = 5512.50 − 5000 = Rs. 512.50.
This question belongs to:
Maths
Compound Interest
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