What sum will produce Rs. 204 as compound interest in 2 years at 4% per annum? MCQ with Answer and Explanation
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Question #1
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A sum of money becomes Rs. 11025 in 2 years at 5% compound interest. The sum is:
Correct Answer: Option B
Explanation:
P = 11025 / (1.05)² = 11025 / 1.1025 = 10000.
P = 11025 / (1.05)² = 11025 / 1.1025 = 10000.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money at compound interest amounts to Rs. 10648 in 3 years and Rs. 11712.80 in 4 years. Find the sum.
Correct Answer: Option D
Explanation:
Rate = (11712.80/10648 − 1) × 100 = 10%. P = 10648 / 1.331 = 8000.
Rate = (11712.80/10648 − 1) × 100 = 10%. P = 10648 / 1.331 = 8000.
This question belongs to:
Maths
Compound Interest
Question #3
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What is the compound interest on Rs. 40000 for 1 year at 20% per annum, compounded half-yearly?
Correct Answer: Option D
Explanation:
Half-yearly rate = 20/2 = 10%. Time = 2 half-years. Amount = 40000 * (1 + 10/100)^2 = 40000 * 1.21 = Rs. 48400. Compound Interest = 48400 - 40000 = Rs. 8400.
Half-yearly rate = 20/2 = 10%. Time = 2 half-years. Amount = 40000 * (1 + 10/100)^2 = 40000 * 1.21 = Rs. 48400. Compound Interest = 48400 - 40000 = Rs. 8400.
This question belongs to:
Maths
Compound Interest
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