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Compound Interest

What will be the difference between simple and compound interest at 10% per annum on a sum of Rs. 1000 after 4 years?

Compound Interest, Mathematics Mcqs /
What will be the difference between simple and compound interest at 10% per annum on a sum of Rs. 1000 after 4 years?

A. Rs. 31
B. Rs. 32.10
C. Rs. 40.40
D. Rs. 64.10
Explanation:
S.I. = (1000 * 10 * 4)/100 = Rs. 400
C.I. = [1000 * (1 + 10/100)4 – 1000] = Rs. 464.10 Difference = (464.10 – 400) = Rs. 64.10

What will be the difference between simple and compound interest at 10% per annum on a sum of Rs. 1000 after 4 years? Read More »

Compound Interest, Mathematics Mcqs

If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same sum at the rate and for the same time?

Compound Interest, Mathematics Mcqs /
If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same sum at the rate and for the same time?

A. Rs. 51.25
B. Rs. 52
C. Rs. 54.25
D. Rs. 60
Explanation:
Sum = (50 * 100) / (2 * 5) = Rs. 500
Amount = [500 * (1 + 5/100)2] = Rs. 551.25
C.I. = (551.25 – 500) = Rs. 51.25.

If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same sum at the rate and for the same time? Read More »

Compound Interest, Mathematics Mcqs

Find the Compound Interest on Rs. 15,625 for 9 months at 16% per annum compounded quarterly?

Compound Interest, Mathematics Mcqs /
Find the Compound Interest on Rs. 15,625 for 9 months at 16% per annum compounded quarterly?

A. Rs. 1851
B. Rs. 1941
C. Rs. 1951
D. Rs. 1961
Explanation:
P = Rs. 15625, n = 9 months = 3 quarters, R = 16% p.a. per quarter.
Amount = [15625 * (1 + 4/100)3]
= (15625 * 26/25 * 26/25 * 26/25) = Rs. 17576 C.I. = 17576 – 15625 = Rs. 1951.

Find the Compound Interest on Rs. 15,625 for 9 months at 16% per annum compounded quarterly? Read More »

Compound Interest, Mathematics Mcqs

What is the difference between the C.I. on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?

Compound Interest, Mathematics Mcqs /
What is the difference between the C.I. on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?

A. Rs. 2.04
B. Rs. 3.06
C. Rs. 4.80
D. Rs. 8.30
Explanation:
C.I. when interest is compounded yearly
= [5000 * (1 + 4/100) * (1 + (1/2 * 4)/100]
= 5000 * 26/25 * 51/50 = Rs. 5304
C.I. when interest is compounded half-yearly
= [5000 * (1 + 2/100)2]
= (5000 * 51/50 * 51/50 * 51/50) = Rs. 5306.04 Difference = (5306.04 – 5304) = Rs. 2.04.

What is the difference between the C.I. on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly? Read More »

Compound Interest, Mathematics Mcqs

A sum of money place at compound interest doubles itself in 4 years. In how many years will it amount to eight times itself?

Compound Interest, Mathematics Mcqs /
A sum of money place at compound interest doubles itself in 4 years. In how many years will it amount to eight times itself?

A. 16
B. 8
C. 12
D. 20
Explanation:
100 —- 200 —- 4
400 —- 4
800 —- 4
——
12 years

A sum of money place at compound interest doubles itself in 4 years. In how many years will it amount to eight times itself? Read More »

Compound Interest, Mathematics Mcqs

Simple interest on a sum at 4% per annum for 2 years is Rs.80. The C.I. on the same sum for the same period is_______?

Compound Interest, Mathematics Mcqs /
Simple interest on a sum at 4% per annum for 2 years is Rs.80. The C.I. on the same sum for the same period is_______?

A. Rs.81.60
B. Rs.160
C. Rs.1081.60
D. Rs.99
Explanation:
SI = 40 + 40
CI = 40 + 40 + 1.6 = 81.6

Simple interest on a sum at 4% per annum for 2 years is Rs.80. The C.I. on the same sum for the same period is_______? Read More »

Compound Interest, Mathematics Mcqs

At the end of three years what will be the compound interest at the rate of 10% p.a. on an amount of Rs.20000?

Compound Interest, Mathematics Mcqs /
At the end of three years what will be the compound interest at the rate of 10% p.a. on an amount of Rs.20000?

A. Rs.6620
B. Rs.6500
C. Rs.6800
D. Rs.6400
Explanation:
A = 20000(11/10)3
= 26620
= 20000
———-
6620

At the end of three years what will be the compound interest at the rate of 10% p.a. on an amount of Rs.20000? Read More »

Compound Interest, Mathematics Mcqs