Compound Interest Practice Question and Answer
8 Q: A sum of Rs. 6400 amounts to Rs. 6724 at 10% p.a. compounded quarterly. Find the time period.
5113 0611f6a03a395cc0fce02df41
611f6a03a395cc0fce02df41- 12 yearsfalse
- 23 yearsfalse
- 33/4 yearfalse
- 41/2 yeartrue
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Answer : 4. "1/2 year"
Q: A person lent certain sum of money at 5% per annum simple interest and in 15 years the interest amounted to Rs 250 less than the sum lent. What was the sum lent (in Rs)?
1240 060fe348f3c8ced168c73d0f8
60fe348f3c8ced168c73d0f8- 11500false
- 21000true
- 33000false
- 42000false
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Answer : 2. "1000"
Q: The simple and compound interest that can be earned in two years at the same rate is Rs 1500 and Rs 1575 respectively. What is the rate (% per annum) of interest?
1402 060fe342b81fb4616a6562d1d
60fe342b81fb4616a6562d1d- 112.5%false
- 220%false
- 310%true
- 45%false
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Answer : 3. "10% "
Q: Compounding interest means interest accrues 2127 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 man borrows some money at 3% simple interest per annum and lends it to somebody at 5% interest to be compounded annually. By this he makes a profit of Rs.541 at the end of 3 years. The money he borrowed was-
1348 060c199ba590e633a7d3b660e
60c199ba590e633a7d3b660e- 1Rs. 15800false
- 2Rs. 18400false
- 3Rs. 8000true
- 4Rs. 12000false
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Answer : 3. "Rs. 8000 "
Q: Find the difference of CI and SI on a sum of Rs. 30240 invested for 3 years at rate of interest per annum.
4784 160c0a13e590e633a7d38e2b1
60c0a13e590e633a7d38e2b1- 1Rs. 2500false
- 2Rs. 2440false
- 3Rs. 2660true
- 4Rs. 3120false
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Answer : 3. "Rs. 2660"
Q: How much time will it take for an amount of Rs.360 to yield Rs.72 as interest at 5 % p.a of simple interest?
1411 160c097fa046ad7381c626c70
60c097fa046ad7381c626c70- 13 yearsfalse
- 24 yearstrue
- 32.5 yearsfalse
- 43.5 yearsfalse
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Answer : 2. "4 years"
Q: A sum of money amounted to Rs.720 in 2 years and Rs.792 in 3 years when interest is compounded annually. The annual rate of interest , (in%) is:
1610 060bf60a7c40f0c12f4b8e8ed
60bf60a7c40f0c12f4b8e8ed- 15%false
- 27.50%false
- 37%false
- 410%true
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