What sum will amount to Rs. 1210 in 2 years at 10% per annum compound interest? MCQ with Answer and Explanation
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Question #1
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Find the compound interest on Rs. 2000 at 10% per annum for 1.5 years compounded half-yearly.
Correct Answer: Option D
Explanation:
Half-yearly rate 5%, n=3. A = 2000 × (1.05)³ = 2000 × 1.157625 = 2315.25, CI = 2315.25 − 2000 = Rs. 315.25.
Half-yearly rate 5%, n=3. A = 2000 × (1.05)³ = 2000 × 1.157625 = 2315.25, CI = 2315.25 − 2000 = Rs. 315.25.
This question belongs to:
Maths
Compound Interest
Question #2
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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 #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. 620. Find the sum.
Correct Answer: Option A
Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 620 = P * (10/100)^2 * (3 + 10/100) => 620 = P * (1/100) * (3.1) => 620 = P * 0.031 => P = 620 / 0.031 = Rs. 20000.
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 620 = P * (10/100)^2 * (3 + 10/100) => 620 = P * (1/100) * (3.1) => 620 = P * 0.031 => P = 620 / 0.031 = Rs. 20000.
This question belongs to:
Maths
Compound Interest
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