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A sum of money invested at compound interest to Rs. 800 in 3 years and to Rs 840 in 4 years. The rate on interest per annum is.

  • 4%
  • 5%
  • 6%
  • 7%
Similar Questions :

1. If the simple interest on a sum of money for 2 years at 5% per annum is Rs.50, what will be the compound interest on same values

  • Rs.51.75
  • Rs 51.50
  • Rs 51.25
  • Rs 51

2. What will be the compound interest on Rs. 25000 after 3 years at the rate of 12 % per annum

  • Rs 10123.20
  • Rs 10123.30
  • Rs 10123.40
  • Rs 10123.50

3. On a sum of money, simple interest for 2 years is Rs 660 and compound interest is Rs 696.30, the rate of interest being the same in both cases.

  • 8%
  • 9%
  • 10%
  • 11%

4. Effective annual rate of interest corresponding to nominal rate of 6% per annum compounded half yearly will be

  • 6.09%
  • 6.10%
  • 6.12%
  • 6.14%

5. The present worth of Rs.169 due in 2 years at 4% per annum compound interest is

  • Rs 155.25
  • Rs 156.25
  • Rs 157.25
  • Rs 158.25
Read more from - Compound Interest Questions Answers
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  • Admin 11 years ago

    Hello Harish,

    We need to calculate the S.I. for one year, so that we can calculate the Rate by putting it in formula of simple interest.
    But if you are confused that why it is being calculated by S.I. formula rather than Compound interest formula. Then please be informed that you can calculate it either way, answer will be same. So to save time and to solve it quickly we use Simple Interest formula.

  • harish 11 years ago

    i need full explination plz icant understand how it is why should we find first find the simpleintrest