What sum will amount to Rs. 2420 in 2 years at 10% per annum compound interest? MCQ with Answer and Explanation
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Question #1
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The simple interest on a sum for 2 years at 10% is Rs. 400. The compound interest on the same sum for 2 years at 10% is:
Correct Answer: Option D
Explanation:
P = 40000/(10×2) = 2000. CI = 2000[(1.1)² − 1] = 2000 × 0.21 = Rs. 420.
P = 40000/(10×2) = 2000. CI = 2000[(1.1)² − 1] = 2000 × 0.21 = Rs. 420.
This question belongs to:
Maths
Compound Interest
Question #2
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If Rs. 5000 becomes Rs. 5832 in 2 years at compound interest, the rate is:
Correct Answer: Option D
Explanation:
5000(1+r)² = 5832 ⇒ (1+r)² = 1.1664 = (1.08)² ⇒ r = 8%.
5000(1+r)² = 5832 ⇒ (1+r)² = 1.1664 = (1.08)² ⇒ r = 8%.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 328. What would be the simple interest on the same sum at the same rate for the same time?
Correct Answer: Option C
Explanation:
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 328 => 1% of sum = 32. Simple Interest = 10% of sum = 10 * 32 = Rs. 320.
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 328 => 1% of sum = 32. Simple Interest = 10% of sum = 10 * 32 = Rs. 320.
This question belongs to:
Maths
Compound Interest
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