What is the principle amount which earns Rs.132 as compound interest for the second year at 10 % per annum?
A. Rs. 1000
B. Rs. 1200
C. Rs. 1320
D. None of these
Compound Interest
Rs. 800 at 5 % Per annum compound interest will amount to Rs. 882 in________?
Rs. 800 at 5 % Per annum compound interest will amount to Rs. 882 in________?
A. 1 Year
B. 2 years
C. 3 Years
D. 4 Years
Explanation:
Time be t years 882 = 800 (1 +5/100) t
=> 882/800 =(21/20) t
(21/20) 2 = (21/20) t
=> t = 2 Therefore,
Time = 2 years
Simple Interest on a sum at 4% per annum for 2 years is 80. The compound interest on the same sum for the same period is_________?
Simple Interest on a sum at 4% per annum for 2 years is 80. The compound interest on the same sum for the same period is_________?
A. Rs. 81.60
B. Rs. 160
C. Rs. 1081.60
D. None of these
Explanation:
Principle = Rs.(8000/8) = Rs. 1000
Therefore, C. I = Rs. [{ 1000 × (1 +4/100)2 – 1000}]
= Rs. 81.60
If Rs. 7500 are borrowed at C. I at the rate of 4 % per annum then after 2 years, the amount to be paid is_______?
If Rs. 7500 are borrowed at C. I at the rate of 4 % per annum then after 2 years, the amount to be paid is_______?
A. Rs. 8082
B. Rs. 7800
C. Rs. 8100
D. Rs. 8112
Explanation:
Amount = Rs. [7500 (1 +4/100)2]
= Rs. [7500 × 26/25 × 26/25] = Rs.8112
The difference between C.I. and S.I. on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?
The difference between C.I. and S.I. on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?
A. 8
B. 10
C. 12
D. Cannot be determined
Explanation:
[15000 * (1 + R/100)2 – 15000] – (15000 * R * 2)/100 = 96
15000[(1 + R/100)2 – 1 – 2R/100] = 96
15000[(100 + R)2 – 10000 – 200R]/10000 = 96
R2 = (96 * 2)/3 = 64 => R = 8
Rate = 8%
A sum of money is borrowed and paid back in two annual installments of Rs. 882 each allowing 5% C.I. The sum borrowed was?
A sum of money is borrowed and paid back in two annual installments of Rs. 882 each allowing 5% C.I. The sum borrowed was?
A. Rs. 1620
B. Rs. 1640
C. Rs. 1680
D. Rs. 1700
Explanation:
Principal = (P.W. of Rs. 882 due 1 year hence) + (P.W. of Rs. 882 due 2 years hence)
= [882/(1 + 5/100) + 882/(1 + 5/100)2]
= (882 * 20)/21 + (882 * 400)/441 = Rs. 1640.
What annual payment will discharge a debt of Rs. 1025 due in 2 years at the rate of 5% compound interest?
What annual payment will discharge a debt of Rs. 1025 due in 2 years at the rate of 5% compound interest?
A. Rs. 550
B. Rs. 551.25
C. Rs. 560
D. Rs. 560.75
Explanation:
Let each installment be Rs. x. Then,
x/(1 + 5/100) + x/(1 + 5/100)2 = 1025
820x + 1025 * 441
x = 551.25
So, value of each installment = Rs. 551.25
The least number of complete years in which a sum of money put out at 20% C.I. will be more than doubled is_________?
The least number of complete years in which a sum of money put out at 20% C.I. will be more than doubled is_________?
A. 3
B. 4
C. 5
D. 6
Explanation:
P(1 + 20/100)n > 2P or (6/5)n > 2
Now, (6/5 * 6/5 * 6/5 * 6/5) > 2. So, n = 4 years.
A sum of money placed at C.I. interest doubles itself in 5 years. It will amount to eight times itself at the same rate of interest in?
A sum of money placed at C.I. interest doubles itself in 5 years. It will amount to eight times itself at the same rate of interest in?
A. 7 years
B. 10 years
C. 15 years
D. 20 years
Explanation:
P(1 + R/100)5 = 2P => (1 + R/100)5 = 2
Let P(1 + R/100)n = 8P
=> (1 + R/100)n = 8 = 23 = {(1 + R/100)5}3
=> (1 + R/100)n = (1 + R/100)15 => n = 15 Required time = 15 years.
A sum of money invested at C.I. amounts to Rs. 800 in 3 years to Rs. 840 in 4 years. The rate of interest per annum is______?
A sum of money invested at C.I. amounts to Rs. 800 in 3 years to Rs. 840 in 4 years. The rate of interest per annum is______?
A. 2 1/2 %
B. 4%
C. 5%
D. 6 2/3 %
Explanation:
S.I. on Rs. 800 for 1 year = (840 – 800) = Rs. 40 Rate = (100 * 40)/(800 * 1) = 5%