Compound interest questions Practice Question and Answer
8Q: What will be Compound interest on Rs 2000 at 20% per annum rate for 1 year and 6 months, if interest is compounded on half-yearly basis. 1707 05d11f269557b295f691f6529
5d11f269557b295f691f6529- 1Rs 665false
- 2Rs 656false
- 3Rs 662true
- 4Rs 663false
- 5None of thesefalse
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Answer : 3. "Rs 662"
Explanation :
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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.
1692 05ef18cd881a47f2e7ae7f42f
5ef18cd881a47f2e7ae7f42f- 1false
- 2true
- 3false
- 4false
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Answer : 2. "
Q: Compounding interest means interest accrues 1690 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?
1636 05f6d7d3c5256e8407c2c6f41
5f6d7d3c5256e8407c2c6f41- 1320false
- 2350false
- 3400true
- 4420false
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Answer : 3. "400"
Q: A borrows a sum at 6% per annum. Rate is to be increased by 5% each year. After four year he pays Rs.3375 as simple interest. How much had he borrowed? 1632 05d1202104702d75f7688323d
5d1202104702d75f7688323d- 112,000false
- 212500true
- 310,000false
- 48,000false
- 5None of thesefalse
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Answer : 2. "12500"
Explanation :
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Q: Rashid borrowed Rs.15000 at the rate of 10% p.a. rate of compound interest, compound annually. He repaid a certain amount at the end of the first. Then he paid Rs. 12100 at the end of the 2nd year to completely discharge the loan. What amount did he repay at the end of 1st year?
1614 061b1ebba8b0b930f53fe3eb0
61b1ebba8b0b930f53fe3eb0- 14500false
- 25500true
- 36500false
- 45800false
- 5None of thesefalse
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Answer : 2. "5500"
Q: A sum of money invested at compound interest amounts to Rs. 650 at the end of first year and Rs. 676 at the end of second year. The sum of money is
1604 05f16b4d6cf79540a75392bea
5f16b4d6cf79540a75392bea- 1Rs. 625true
- 2Rs. 560false
- 3Rs. 600false
- 4Rs. 540false
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Answer : 1. "Rs. 625 "
Q: An amount of money at compound interest grows up to Rs. 3,840 in 4 years and up to Rs. 3,936 in 5 years. Find the rate of interest.
1550 05f16b85f97cc6b353bf406b4
5f16b85f97cc6b353bf406b4- 13.5 %false
- 22.05 %false
- 32.5 %true
- 42 %false
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