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Question Detail
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
Answer: Option C
Explanation:
\begin{aligned}
S.I. = \frac{P*R*T}{100} \\
P = \frac{50*100}{5*2} = 500\\
Amount = 500(1+\frac{5}{100})^2 \\
500(\frac{21}{20} * \frac{21}{20}) \\
= 551.25 \\
C.I. = 551.25 - 500 = 51.25
\end{aligned}
1. 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
Answer: Option B
Explanation:
In this type of question we apply formula
\begin{aligned}
Amount = \frac{P}{(1+\frac{R}{100})^n} \\
Amount = \frac{169}{(1+\frac{4}{100})^2} \\
Amount = \frac{169 * 25 * 25}{26*26} \\
Amount = 156.25
\end{aligned}
2. At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years
- 3%
- 4%
- 5%
- 6%
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}
3. 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
Answer: Option C
Explanation:
\begin{aligned}
S.I. = \frac{P*R*T}{100} \\
P = \frac{50*100}{5*2} = 500\\
Amount = 500(1+\frac{5}{100})^2 \\
500(\frac{21}{20} * \frac{21}{20}) \\
= 551.25 \\
C.I. = 551.25 - 500 = 51.25
\end{aligned}
4. The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is
- 4 years
- 5 years
- 6 years
- 7 years
Answer: Option A
Explanation:
As per question we need something like following
\begin{aligned}
P(1+\frac{R}{100})^n > 2P \\
(1+\frac{20}{100})^n > 2 \\
(\frac{6}{5})^n > 2 \\
\frac{6}{5} \times \frac{6}{5} \times \frac{6}{5}\times\frac{6}{5} > 2
\end{aligned}
So answer is 4 years
5. Find the compound interest on Rs.16,000 at 20% per annum for 9 months, compounded quarterly
- Rs 2520
- Rs 2521
- Rs 2522
- Rs 2523
Answer: Option C
Explanation:
Please remember, when we have to calculate C.I. quarterly then we apply following formula if n is the number of years
\begin{aligned}
Amount = P(1+\frac{\frac{R}{4}}{100})^{4n}
\end{aligned}
Principal = Rs.16,000;
Time=9 months = 3 quarters;
Rate = 20%, it will be 20/4 = 5%
So lets solve this question now,
\begin{aligned}
Amount = 16000(1+\frac{5}{100})^3 \\
= 18522\\
C.I = 18522 - 16000 = 2522
\end{aligned}
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