What sum will produce Rs. 410 as compound interest in 2 years at 5% per annum? MCQ with Answer and Explanation
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Question #1
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The compound interest on a certain sum of money for 2 years at 4% per annum is Rs. 204. 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 4% = 4 + 4 + (44)/100 = 8.16%. Simple interest rate = 4 * 2 = 8%. Given 8.16% of sum = 204 => 1% of sum = 25. Simple Interest = 8% of sum = 8 * 25 = Rs. 200.
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Simple interest rate = 4 * 2 = 8%. Given 8.16% of sum = 204 => 1% of sum = 25. Simple Interest = 8% of sum = 8 * 25 = Rs. 200.
This question belongs to:
Maths
Compound Interest
Question #2
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Find the compound interest on Rs. 5600 at 5% per annum for 2 years.
Correct Answer: Option C
Explanation:
A = 5600 × 1.1025 = 6174, CI = 6174 − 5600 = Rs. 574.
A = 5600 × 1.1025 = 6174, CI = 6174 − 5600 = Rs. 574.
This question belongs to:
Maths
Compound Interest
Question #3
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Find the compound interest on Rs. 4500 at 8% per annum for 1 year compounded half-yearly.
Correct Answer: Option D
Explanation:
Half-yearly rate 4%, n=2. A = 4500 × (1.04)² = 4500 × 1.0816 = 4867.20, CI = 4867.20 − 4500 = Rs. 367.20.
Half-yearly rate 4%, n=2. A = 4500 × (1.04)² = 4500 × 1.0816 = 4867.20, CI = 4867.20 − 4500 = Rs. 367.20.
This question belongs to:
Maths
Compound Interest
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