What sum will amount to Rs. 5832 in 2 years at 8% 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. 1000. The compound interest on the same sum for 2 years at 10% is:
Correct Answer: Option A
Explanation:
P = 100000/(10×2) = 5000. CI = 5000 × 0.21 = 1050.
P = 100000/(10×2) = 5000. CI = 5000 × 0.21 = 1050.
This question belongs to:
Maths
Compound Interest
Question #2
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Find the compound interest on Rs. 40000 for 1 year at 12% per annum, compounded quarterly.
Correct Answer: Option D
Explanation:
Quarterly rate = 12 / 4 = 3%. Time = 4 quarters. Amount = 40000 * (1 + 3/100)^4 = 40000 * (1.03)^4 = 40000 * 1.12550881 = Rs. 45020.35. Compound Interest = 45020.35 - 40000 = Rs. 5020.35. Correct option matches B layout metrics.
Quarterly rate = 12 / 4 = 3%. Time = 4 quarters. Amount = 40000 * (1 + 3/100)^4 = 40000 * (1.03)^4 = 40000 * 1.12550881 = Rs. 45020.35. Compound Interest = 45020.35 - 40000 = Rs. 5020.35. Correct option matches B layout metrics.
This question belongs to:
Maths
Compound Interest
Question #3
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What is the effective annual rate of interest corresponding to a nominal rate of 6% per annum compounded half-yearly?
Correct Answer: Option A
Explanation:
Effective rate = (1 + 0.03)² − 1 = 1.0609 − 1 = 0.0609 = 6.09%.
Effective rate = (1 + 0.03)² − 1 = 1.0609 − 1 = 0.0609 = 6.09%.
This question belongs to:
Maths
Compound Interest
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