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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. What will be the difference between simple and compound interest @ 10% per annum on the sum of Rs 1000 after 4 years
- Rs 62.10
- Rs 63.10
- Rs 64.10
- Rs 65.10
Answer: Option C
Explanation:
\begin{aligned}
S.I. = \frac{1000*10*4}{100} = 400 \\
C.I. = [1000(1+\frac{10}{100})^4 - 1000] \\
= 464.10
\end{aligned}
So difference between simple interest and compound interest will be 464.10 - 400 = 64.10
2. We need to divide Total Sum Rs. 3364 between Ram and Sham so that Ram's share at the end of 5 years may equal to Sham's share at the end of seven years with compound interest rate at 5 percent.
- 1864 and 1500
- 1764 and 1600
- 1664 and 1700
- 1564 and 1800
Answer: Option B
Explanation:
It is clear from question that Ram's share after five years = Sham's share after seven years
Hence we can conclude following :
\begin{aligned}
\text{(Rams's present share)}\left(1 + \dfrac{5}{100}\right)^5 = \text{(Sham's present share)}\left(1 + \dfrac{5}{100}\right)^7\\
=> \dfrac{\text{(Ram's present share)}}{\text{(Sham's present share)}}= \dfrac{\left(1 + \dfrac{5}{100}\right)^7}{\left(1 + \dfrac{5}{100}\right)^5} \\ = \left(1 + \dfrac{5}{100}\right)^{(7-5)} = \left(1 + \dfrac{5}{100}\right)^2 \\ = \left(\dfrac{21}{20}\right)^2 = \dfrac{441}{400}
\end{aligned}
Ram's present share : B's present share = 441 : 400
\begin{aligned}
\text{As amount is Rs.3364, Ram's share = }3364 \times \dfrac{441}{(441+400)} \\\\
= 3364 \times \dfrac{441}{841} = 4 \times 441 = \text{ Rs. 1764}
\end{aligned}
So Sham's share is = 3364-1764 = 1600
3. 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}
4. 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
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
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}
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