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Question Detail
The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs 1. Find the sum
- Rs 600
- Rs 625
- Rs 650
- Rs 675
Answer: Option B
Explanation:
Let the Sum be P
\begin{aligned}
S.I. = \frac{P*4*2}{100} = \frac{2P}{25}\\
C.I. = P(1+\frac{4}{100})^2 - P \\
= \frac{676P}{625} - P \\
= \frac{51P}{625} \\
\text{As, C.I. - S.I = 1}\\
=> \frac{51P}{625} - \frac{2P}{25} = 1 \\
=> \frac{51P - 50P}{625} = 1 \\
P = 625
\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. 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
3. 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
4. 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}
5. 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}
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