What is the principal if the amount after 3 years at 5% compound interest is Rs. 2315.25? MCQ with Answer and Explanation
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Question #1
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What is the compound interest on Rs. 40000 for 1 year at 10% per annum, compounded quarterly?
Correct Answer: Option B
Explanation:
Quarterly rate = 10/4 = 2.5%. Time = 4 quarters. Amount = 40000 * (1 + 2.5/100)^4 = 40000 * (1.025)^4 = 40000 * 1.10381289 = Rs. 44152.51. Compound Interest = 44152.51 - 40000 = Rs. 4152.51.
Quarterly rate = 10/4 = 2.5%. Time = 4 quarters. Amount = 40000 * (1 + 2.5/100)^4 = 40000 * (1.025)^4 = 40000 * 1.10381289 = Rs. 44152.51. Compound Interest = 44152.51 - 40000 = Rs. 4152.51.
This question belongs to:
Maths
Compound Interest
Question #2
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At what rate percent compound interest will a sum of money become 9 times in 2 years?
Correct Answer: Option A
Explanation:
(1 + r)² = 9 ⇒ 1 + r = 3 ⇒ r = 2 = 200%.
(1 + r)² = 9 ⇒ 1 + r = 3 ⇒ r = 2 = 200%.
This question belongs to:
Maths
Compound Interest
Question #3
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At what rate percent compound interest will a sum of Rs. 2000 become Rs. 2880 in 2 years?
Correct Answer: Option C
Explanation:
2000(1+r)² = 2880 ⇒ (1+r)² = 1.44 = (1.2)² ⇒ r = 20%.
2000(1+r)² = 2880 ⇒ (1+r)² = 1.44 = (1.2)² ⇒ r = 20%.
This question belongs to:
Maths
Compound Interest
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