Compound interest questions Practice Question and Answer
8 Q: A sum of money is invested at 20 % compound interest (compounded annually). It would fetch 723 more if interest is compound half-yearly. The sum is –
1702 05f16ea6e9a713b0717ce222c
5f16ea6e9a713b0717ce222c- 1₹ 20,000false
- 2₹ 7,500false
- 3₹ 72,300true
- 4₹ 30,000false
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Answer : 3. "₹ 72,300 "
Q: What will be the compound interest on a sum of Rs. 21000 for 2 years at the rate of 14.28% per annum when interest is compound yearly?
1699 05eb945f443b27164c8e42346
5eb945f443b27164c8e42346- 16428true
- 23162false
- 37129false
- 48231false
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Answer : 1. "6428"
Q: Rs.4000 becomes Rs. 5000 in 4 years at a certain rate of compound interest. What will be the sum at the end of 12 years?
1696 05f5afa4069ed13038c19e544
5f5afa4069ed13038c19e544- 1Rs. 7712.50false
- 2Rs. 7812.50true
- 3Rs. 7612.50false
- 4Rs. 7512.50false
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Answer : 2. "Rs. 7812.50"
Q: A certain sum amounts to Rs 1308 in 3 years, while it becomes Rs 1380 in 5 years. Find the principal. 1641 15d120c07dea5da6dbe8bf267
5d120c07dea5da6dbe8bf267- 1Rs 1100false
- 2Rs 1200true
- 3Rs 1300false
- 4Rs 1400false
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Answer : 2. "Rs 1200"
Explanation :
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Q: Mr. Duggal invested Rs. 20, 000 with rate of interest at 20 p.c.p.a. The interest was compounded half yearly for first year and in the next year it was compounded yearly. What will be the total interest earned at the end of two years?
1614 05e4d0f971b69e805d0b7be73
5e4d0f971b69e805d0b7be73- 1Rs. 8,800false
- 2Rs. 9,040true
- 3Rs. 8,040false
- 4Rs. 9,800false
- 5None of thesefalse
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Answer : 2. "Rs. 9,040"
Q: The sum of length, breadth and height of a cuboid is 25 cm. The length of its diagonal is 15 cm. Find the total surface area of the cuboid.
1574 05ef18cd881a47f2e7ae7f42f
5ef18cd881a47f2e7ae7f42f- 1$$ {200 cm^2}$$false
- 2$$ {400 cm^2}$$true
- 3$$ {500 cm^2}$$false
- 4$$ {600 cm^2}$$false
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Answer : 2. "$$ {400 cm^2}$$"
Q: Compounding interest means interest accrues 1534 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: A principal increases by 21% over 2 years with compound interest. What will be the simple interest in 4 years at the same interest rate of Rs 1000?
1504 05f6d7d3c5256e8407c2c6f41
5f6d7d3c5256e8407c2c6f41- 1320false
- 2350false
- 3400true
- 4420false
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