What sum will amount to Rs. 7986 in 3 years at 10% compound interest? MCQ with Answer and Explanation
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Question #1
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A sum of money at compound interest becomes Rs. 7396 in 2 years and Rs. 7950.70 in 3 years. Find the sum.
Correct Answer: Option B
Explanation:
Rate = (7950.70/7396 - 1)*100 = 7.5%? 7950.70/7396 = 1.075, so 7.5%. P = 7396 / (1.075)² = 7396 / 1.155625 = 6400 exactly. Check: 1.075^2 = 1.155625, 6400*1.155625 = 7396. So answer 6400.
Rate = (7950.70/7396 - 1)*100 = 7.5%? 7950.70/7396 = 1.075, so 7.5%. P = 7396 / (1.075)² = 7396 / 1.155625 = 6400 exactly. Check: 1.075^2 = 1.155625, 6400*1.155625 = 7396. So answer 6400.
This question belongs to:
Maths
Compound Interest
Question #2
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The effective annual rate for 12% per annum compounded half-yearly is:
Correct Answer: Option A
Explanation:
Effective = (1.06)² − 1 = 1.1236 − 1 = 12.36%.
Effective = (1.06)² − 1 = 1.1236 − 1 = 12.36%.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on Rs. 1000 at 10% per annum for 2 years compounded half-yearly is:
Correct Answer: Option A
Explanation:
Half-yearly rate 5%, n=4. A = 1000 × (1.05)⁴ = 1000 × 1.21550625 = 1215.50625, CI ≈ Rs. 215.50.
Half-yearly rate 5%, n=4. A = 1000 × (1.05)⁴ = 1000 × 1.21550625 = 1215.50625, CI ≈ Rs. 215.50.
This question belongs to:
Maths
Compound Interest
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