What sum will yield 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 Rs. 5000 at 8% per annum for 1 year compounded half-yearly is:
Correct Answer: Option C
Explanation:
Rate per half-year = 4%, n = 2. A = 5000 × (1.04)² = 5000 × 1.0816 = 5408, CI = 5408 − 5000 = Rs. 408.
Rate per half-year = 4%, n = 2. A = 5000 × (1.04)² = 5000 × 1.0816 = 5408, CI = 5408 − 5000 = Rs. 408.
This question belongs to:
Maths
Compound Interest
Question #2
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The compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 1050. What would be the simple interest on the same sum at the same rate for the same time?
Correct Answer: Option A
Explanation:
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Simple interest rate = 10 * 2 = 20%. Given 21% of sum = 1050 => 1% of sum = 50. Simple Interest = 20% of sum = 20 * 50 = Rs. 1000.
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Simple interest rate = 10 * 2 = 20%. Given 21% of sum = 1050 => 1% of sum = 50. Simple Interest = 20% of sum = 20 * 50 = Rs. 1000.
This question belongs to:
Maths
Compound Interest
Question #3
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Find the compound interest on Rs. 1600 at 10% per annum for 2 years if the interest is compounded annually.
Correct Answer: Option C
Explanation:
A = 1600 × (1.1)² = 1600 × 1.21 = 1936, CI = 1936 − 1600 = Rs. 336.
A = 1600 × (1.1)² = 1600 × 1.21 = 1936, CI = 1936 − 1600 = Rs. 336.
This question belongs to:
Maths
Compound Interest
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