What sum will amount to Rs. 9261 in 2 years at 5% per annum compound interest? MCQ with Answer and Explanation
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Question #1
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The compound interest on a certain sum for 2 years at 12% per annum is Rs. 1272. Find the principal sum.
Correct Answer: Option B
Explanation:
Effective rate of compound interest for 2 years at 12% = 12 + 12 + (1212)/100 = 25.44%. Given 25.44% of P = 1272 => P = 1272 / 0.2544 = Rs. 5000.
Effective rate of compound interest for 2 years at 12% = 12 + 12 + (1212)/100 = 25.44%. Given 25.44% of P = 1272 => P = 1272 / 0.2544 = Rs. 5000.
This question belongs to:
Maths
Compound Interest
Question #2
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Find the difference between compound interest and simple interest on Rs. 5000 for 2 years at 8% per annum.
Correct Answer: Option A
Explanation:
Difference for 2 years = P * (R/100)^2 = 5000 * (8/100)^2 = 5000 * (64 / 10000) = Rs. 32.
Difference for 2 years = P * (R/100)^2 = 5000 * (8/100)^2 = 5000 * (64 / 10000) = Rs. 32.
This question belongs to:
Maths
Compound Interest
Question #3
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A sum of money doubles itself in 6 years at compound interest compounded annually. In how many years will it become 16 times of itself?
Correct Answer: Option A
Explanation:
The sum becomes 2^1 times in 6 years. It will become 16 (2^4) times in 4 * 6 = 24 years.
The sum becomes 2^1 times in 6 years. It will become 16 (2^4) times in 4 * 6 = 24 years.
This question belongs to:
Maths
Compound Interest
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