Compound interest questions Practice Question and Answer
8Q: Mr Amin borrowed a certain sum from Mr Visvas. He borrowed for first 2 year at 8% per annum, for next 3 years at 11% per annum and beyond that at 14% per annum. Mr Amin paid Rs 10,920 as Simple interest in 8 years. Find how much he had borrowed? 1964 05d1206c74702d75f76883252
5d1206c74702d75f76883252- 1Rs 12000true
- 2Rs 15000false
- 3Rs 14000false
- 4Data insufficientfalse
- 5None of thesefalse
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Answer : 1. "Rs 12000"
Explanation :
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Q: A certain sum amounts to Rs 1308 in 3 years, while it becomes Rs 1380 in 5 years. Find the principal. 1620 15d120c07dea5da6dbe8bf267
5d120c07dea5da6dbe8bf267- 1Rs 1100false
- 2Rs 1200true
- 3Rs 1300false
- 4Rs 1400false
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Answer : 2. "Rs 1200"
Explanation :
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Q: One certain Principal if the Simple interest for two years is Rs 2400 and Compound interest for the two years is Rs 2544, what is the rate of Interest?
8632 05dd63c4f7780ee35515b2921
5dd63c4f7780ee35515b2921- 112 %true
- 26 %false
- 324 %false
- 418 %false
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Answer : 1. "12 % "
Q: Compounding interest means interest accrues 1506 15b5cc604e4d2b4197774b4b8
5b5cc604e4d2b4197774b4b8- 1at variable rates throughout the termfalse
- 2more quickly than simple interesttrue
- 3more slowly than simple interestfalse
- 4at the same rate as simple interestfalse
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Answer : 2. "more quickly than simple interest"
Explanation :
Answer: B) more quickly than simple interest Explanation: Compounding interest means interest accrues on the interest charged and the principal amount each period the interest is charged. Compound interest is calculated by multiplying the principal amount by one plus the annual interest rate raised to the number of compound periods minus one.The total initial amount of the loan is then subtracted from the resulting value. The formula for calculating compound interest is: [P (1 + i)n] – P = P [(1 + i)n – 1] (Where P = Principal, i = nominal annual interest rate in percentage terms, and n = number of compounding periods.) Take a three-year loan of Rs. 10,000 at an interest rate of 5% that compounds annually. What would be the amount of interest? In this case, it would be: Rs. 10,000 [(1 + 0.05)3] – 1 = 10,000 [1.157625 – 1] = Rs. 1,576.25. How it grows ::
Q: What amount of compound interest can be obtained on the principal amount of Rs. 15800 at the rate of 6 percent per annum at the end of 2 years? 1970 05d11edcb557b295f691f651c
5d11edcb557b295f691f651c- 1Rs 1,896false
- 2Rs.2012.48false
- 3Rs. 1952.88true
- 4Rs.1,956false
- 5None of thesefalse
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Answer : 3. "Rs. 1952.88"
Q: The simple interest accrued on an amount of Rs 15,000 at the end of three year is Rs 2,250. What would be the compound interest accrued on the same amount at the same rate in the same period? 1756 05d11f893557b295f691f656a
5d11f893557b295f691f656a- 1Rs 8934.6784false
- 2Rs 8017.5744false
- 3Rs 7861.8754false
- 4Cannot be determinedfalse
- 5None of thesetrue
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Answer : 5. "None of these"
Q: If rate of interest is 2% more, the amount will exceed Rs. 60 for one year, find the principal? 1099 05d1209c1dea5da6dbe8bf262
5d1209c1dea5da6dbe8bf262- 1300false
- 23,000true
- 36,000false
- 44,000false
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Answer : 2. "3,000"
Q: A bank offers 15 % compound interest per half-year. A customer deposits Rs 2400 each on 1 January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is –
3391 05dd63ca17780ee35515b292a
5dd63ca17780ee35515b292a- 1Rs. 2268false
- 2Rs. 1134true
- 3Rs. 567false
- 4Rs. 283false
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