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Compound Interest

The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is________?

Compound Interest, Mathematics Mcqs /
The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is________?

A. 6.06%
B. 6.07%
C. 6.08%
D. 6.09%
Explanation:
Amount of Rs. 100 for 1 year when compounded half-yearly = [100 * (1 + 3/100)2] = Rs. 106.09 Effective rate = (106.09 – 100) = 6.09%

The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is________? Read More »

Compound Interest, Mathematics Mcqs

On a sum of money, the S.I. for 2 years is Rs. 660, while the C.I. is Rs. 696.30, the rate of interest being the same in both the cases. The rate of interest is________?

Compound Interest, Mathematics Mcqs /
On a sum of money, the S.I. for 2 years is Rs. 660, while the C.I. is Rs. 696.30, the rate of interest being the same in both the cases. The rate of interest is________?

A. 10%
B. 10.5%
C. 12%
D. None of these
Explanation:
Difference in C.I. and S.I for 2 years = (696.30 – 660) = Rs. 36.30.
S.I for one year = Rs. 330.
S.I. on Rs. 330 for 1 year = Rs. 36.30
Rate = (100 * 36.30)/(330 * 1) = 11%

On a sum of money, the S.I. for 2 years is Rs. 660, while the C.I. is Rs. 696.30, the rate of interest being the same in both the cases. The rate of interest is________? Read More »

Compound Interest, Mathematics Mcqs

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs. ) is_________?

Compound Interest, Mathematics Mcqs /
The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs. ) is_________?

A. 625
B. 630
C. 640
D. 650
Explanation:
Let the sum be Rs. x. Then,
[x (1 + 4/100)2 – x] = (676/625 x – x) = 51/625 x
S.I. = (x * 4 * 2)/100 = 2x/25
51x/625 – 2x/25 = 1 or x = 625.

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs. ) is_________? Read More »

Compound Interest, Mathematics Mcqs

There is 60% increase in an amount in 6 years at S.I. What will be the C.I. of Rs. 12,000 after 3 years at the same rate?

Compound Interest, Mathematics Mcqs /
There is 60% increase in an amount in 6 years at S.I. What will be the C.I. of Rs. 12,000 after 3 years at the same rate?

A. Rs. 2160
B. Rs. 3120
C. Rs. 3972
D. Rs. 6240
Explanation:
Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years.
R = (100 * 60)/(100 * 6) = 10% p.a.
Now, P = Rs. 12000, T = 3 years and R = 10% p.a.
C.I. = [12000 * {(1 + 10/100)3 – 1}]
= 12000 * 331/1000 = Rs. 3972

There is 60% increase in an amount in 6 years at S.I. What will be the C.I. of Rs. 12,000 after 3 years at the same rate? Read More »

Compound Interest, Mathematics Mcqs

The S.I. on a certain sum of money for 3 years at 8% per annum is half the C.I. on Rs. 4000 for 2 years at 10% per annum. The sum placed on S.I. is________?

Compound Interest, Mathematics Mcqs /
The S.I. on a certain sum of money for 3 years at 8% per annum is half the C.I. on Rs. 4000 for 2 years at 10% per annum. The sum placed on S.I. is________?

A. Rs. 1550
B. Rs. 1650
C. Rs. 1750
D. Rs. 2000
Explanation:
C.I. = [4000 * (1 + 10/100)2 – 4000]
= (4000 * 11/10 * 11/10 – 4000) = Rs. 840.
Sum = (420 * 100)/(3 * 8) = Rs. 1750

The S.I. on a certain sum of money for 3 years at 8% per annum is half the C.I. on Rs. 4000 for 2 years at 10% per annum. The sum placed on S.I. is________? Read More »

Compound Interest, Mathematics Mcqs

The C.I. on a certain sum for 2 years at 10% per annum is Rs. 525. The S.I. on the same sum for double the time at half the rate percent per annum is________?

Compound Interest, Mathematics Mcqs /
The C.I. on a certain sum for 2 years at 10% per annum is Rs. 525. The S.I. on the same sum for double the time at half the rate percent per annum is________?

A. Rs. 400
B. Rs. 500
C. Rs. 600
D. Rs. 800
Explanation:
Let the sum be Rs. P. Then,
[P(1 + 10/100)2 – p] = 525
P[(11/10)2 – 1] = 525
P = (525 * 100) / 21 = 2500
Sum = Rs. 2500
So, S.I. = (2500 * 5 * 4)/100 = Rs. 500

The C.I. on a certain sum for 2 years at 10% per annum is Rs. 525. The S.I. on the same sum for double the time at half the rate percent per annum is________? Read More »

Compound Interest, Mathematics Mcqs

If the C.I. on a sum for 2 years at 12 1/2 % per annum is Rs. 510, the S.I. on the same sum at the same rate for the same period of time is________?

Compound Interest, Mathematics Mcqs /
If the C.I. on a sum for 2 years at 12 1/2 % per annum is Rs. 510, the S.I. on the same sum at the same rate for the same period of time is________?

A. Rs. 400
B. Rs. 450
C. Rs. 460
D. Rs. 480
Explanation:
Let the sum be Rs. P. Then,
[P(1 + 25/(2 * 100))2 – P] = 510
P[(9/8)2 – 1] = 510.
Sum = Rs. 1920
So, S.I. = (1920 * 25 * 2) / (2 * 100) = Rs. 480

If the C.I. on a sum for 2 years at 12 1/2 % per annum is Rs. 510, the S.I. on the same sum at the same rate for the same period of time is________? Read More »

Compound Interest, Mathematics Mcqs

The principal that amounts to Rs. 4913 in 3 years at 6 1/4 % per annum C.I. compounded annually, is_________??

Compound Interest, Mathematics Mcqs /
The principal that amounts to Rs. 4913 in 3 years at 6 1/4 % per annum C.I. compounded annually, is_________??

A. Rs. 3096
B. Rs. 4076
C. Rs. 4085
D. Rs. 4096
Explanation:
Principal = [4913 / (1 + 25/(4 * 100))3]
= 4913 * 16/17 * 16/17 * 16/17 = Rs. 4096.

The principal that amounts to Rs. 4913 in 3 years at 6 1/4 % per annum C.I. compounded annually, is_________?? Read More »

Compound Interest, Mathematics Mcqs

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period(in years) is_________?

Compound Interest, Mathematics Mcqs /
The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period(in years) is_________?

A. 2
B. 2 1/2
C. 3
D. 4
Explanation:
Amount = (30000 + 4347) = Rs. 34347
Let the time be n years. Then,
30000(1 + 7/100)n = 34347
= (107/100)n = 34347/30000 = (107/100)2
n = 2 years.

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period(in years) is_________? Read More »

Compound Interest, Mathematics Mcqs

The difference between simple and compound interest on Rs. 1200 for one year at 10% per annum reckoned half-yearly is________?

Compound Interest, Mathematics Mcqs /
The difference between simple and compound interest on Rs. 1200 for one year at 10% per annum reckoned half-yearly is________?

A. Rs. 2.50
B. Rs. 3
C. Rs. 3.75
D. Rs. 4
Explanation:
S.I. = (1200 * 10 * 1)/100 = Rs. 120
C.I. = [1200 * (1 + 5/100)2 – 1200] = Rs. 123 Difference = (123 – 120) = Rs. 3.

The difference between simple and compound interest on Rs. 1200 for one year at 10% per annum reckoned half-yearly is________? Read More »

Compound Interest, Mathematics Mcqs