Question Detail

Albert invested amount of 8000 in a fixed deposit for 2 years at compound interest rate of 5 % per annum. How much Albert will get on the maturity of the fixed deposit.

Rs. 8510
Rs. 8620
Rs. 8730
Rs. 8820

Answer: Option D

Explanation:

\begin{aligned}
=> (8000 \times(1+\frac{5}{100})^2) \\
=> 8000 \times \frac{21}{20}\times \frac{21}{20} \\
=> 8820
\end{aligned}

1. Find compound interest on Rs. 7500 at 4% per annum for 2 years, compounded annually

Rs 312
Rs 412
Rs 512
Rs 612

Answer: Option D

Explanation:

Please apply the formula

\begin{aligned}
Amount = P(1+\frac{R}{100})^n \\
\text{C.I. = Amount - P}
\end{aligned}

2. In what time will Rs.1000 become Rs.1331 at 10% per annum compounded annually

2 Years
3 Years
4 Years
5 Years

Answer: Option B

Explanation:

Principal = Rs.1000;
Amount = Rs.1331;
Rate = Rs.10%p.a.

Let the time be n years then,

\begin{aligned}
1000(1+\frac{10}{100})^n = 1331 \\

(\frac{11}{10})^n = \frac{1331}{1000} \\

(\frac{11}{10})^3 = \frac{1331}{1000} \\

\end{aligned}
So answer is 3 years

3. 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

Answer: Option A

Explanation:

\begin{aligned}
(25000 \times (1 + \frac{12}{100})^3) \\
=> 25000\times\frac{28}{25}\times\frac{28}{25}\times\frac{28}{25} \\
=> 35123.20 \\
\end{aligned}

So Compound interest will be 35123.20 - 25000
= Rs 10123.20

4. At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years

Answer: Option D

Explanation:

Let Rate will be R%

\begin{aligned}
1200(1+\frac{R}{100})^2 = \frac{134832}{100} \\

(1+\frac{R}{100})^2 = \frac{134832}{120000} \\

(1+\frac{R}{100})^2 = \frac{11236}{10000} \\

(1+\frac{R}{100}) = \frac{106}{100} \\
=> R = 6\%
\end{aligned}

5. 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.

Answer: Option D

Explanation:

Difference between C.I and S.I for 2 years = 36.30
S.I. for one year = 330.
S.I. on Rs 330 for one year = 36.30

So R% = \frac{100*36.30}{330*1} = 11%