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Question Detail
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
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
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}
2. 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}
3. 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
4. Find the compound interest on Rs. 7500 at 4% per annum for 2 years, compounded annually.
- Rs. 610
- Rs. 612
- Rs. 614
- Rs. 616
Answer: Option B
Explanation:
\begin{aligned}
Amount = [7500 \times (1+ \frac{4}{100})^2] \\
= (7500 \times \frac{26}{25} \times \frac{26}{25}) \\
= 8112 \\
\end{aligned}
So compound interest = (8112 - 7500) = 612
5. 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%
Answer: Option A
Explanation:
Let the amount Rs 100 for 1 year when compounded half yearly, n = 2, Rate = 6/2 = 3%
\begin{aligned}
Amount = 100(1+\frac{3}{100})^2 = 106.09
\end{aligned}
Effective rate = (106.09 - 100)% = 6.09%
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