Compound interest questions Practice Question and Answer
8Q: A sum of money at compound interest amounts to thrice itself in three years. In how many years will it be 81 times itself? 1017 05d11faf8557b295f691f6571
5d11faf8557b295f691f6571- 127false
- 29false
- 312true
- 415false
- 5None of thesefalse
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Answer : 3. "12"
Q: 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. 1052 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: What would be the compound interest obtained on an amount of Rs.1250 at the rate of 8 percent per annum after 2 years? 2666 15d11ebe84702d75f768831e9
5d11ebe84702d75f768831e9- 1Rs.200false
- 2Rs.208true
- 3Rs.212false
- 4Rs.220false
- 5None of thesefalse
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Answer : 2. "Rs.208"
Explanation :
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Q: What will be compound interest-on, a sum of Rs 1000 at die rate of 10 percent per annum after 5 year? 1026 05d11f041557b295f691f6523
5d11f041557b295f691f6523- 1Rs 610.51true
- 2Rs 559.45false
- 3Rs 665.50false
- 4Rs 665.51false
- 5None of thesefalse
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Answer : 1. "Rs 610.51"
Explanation :
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Q: Find the compound interest on Rs.6250 at 12% per annum rate for one year if interest is calculated on half yearly basis. 2006 05d11f65d4702d75f768831f9
5d11f65d4702d75f768831f9- 1Rs 772.50true
- 2Rs 772false
- 3Rs 662false
- 4Rs 663false
- 5None of thesefalse
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Answer : 1. "Rs 772.50"
Explanation :
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Q: Compounding interest means interest accrues 1306 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? 1817 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? 1585 05d11f893557b295f691f656a
5d11f893557b295f691f656a- 1Rs 8934.6784false
- 2Rs 8017.5744false
- 3Rs 7861.8754false
- 4Cannot be determinedfalse
- 5None of thesetrue
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