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- Question
- Find the effective annual rate of 4 per cent per annum compound interest paid quarterly.?
Options- A. 4.0604%
- B. 4.604%
- C. 5.0605%
- D. 5.605%
- Correct Answer
- 4.0604%
ExplanationEffective annual rate = 100(1 + {(4/4) /100})4 - 100
= (101/100)4 x 100 - 100
= 104.0604 - 100
= 4.0604% - 1. In what time will Rs. 6250 amount to Rs. 6632.55 at 4% compound interest payable half yearly?
Options- A. 3 years
- B. 3/2 years
- C. 1 years
- D. 5/2 years Discuss
- 2. A moneylender lends Rs. 2000 for 6 months at 20% per annum whereas the interest is compounded quarterly. After the given period he will get the amount of?
Options- A. Rs. 2205
- B. Rs. 2200
- C. Rs. 2160
- D. Rs. 2040 Discuss
- 3. If the compound interest of a certain sum of money for two successive years be Rs, 225 and Rs. 238.50. What is the rate of interest per annum?
Options- A. 5%
- B. 6%
- C. 71/2
- D. 10% Discuss
- 4. What will be the approximate compound interest on Rs. 101005 at 10% p.a. for 3 years?
Options- A. Rs. 4500
- B. Rs. 3000
- C. Rs. 3300
- D. Rs. 3600 Discuss
- 5. Rs. 1600 at 10% per annum compounded half yearly amount to Rs. 1944.81 in?
Options- A. 2 years
- B. 3 years
- C. 11/2 years
- D. 21/2 Discuss
- 6. In what time will Rs. 390625 amount to Rs. 456976 at 4 per cent compound interest?
Options- A. 2 years
- B. 4 years
- C. 3 years
- D. 5 years Discuss
- 7. Find the effective annual rate of 5 per cent per annum compound interest paid half yearly?
Options- A. 1.025%
- B. 6.0625%
- C. 5.062%
- D. None of these Discuss
- 8. At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?
Options- A. 7%
- B. 7.5%
- C. 6%
- D. 6.5% Discuss
- 9. A sum of ? 2400 deposited at CI, Double after 5 yr. After 20 yr it will become?
Options- A. ? 24000
- B. ? 38400
- C. ? 19200
- D. Cannot be determined Discuss
- 10. Rohit earns an interest of ? 1656 for the third year and ? 1440 for the second year on the same sum. Find the rate of interest if it is lent at compound interest?
Options- A. 18%
- B. 12%
- C. 15%
- D. None of these Discuss
Compound Interest problems
Search Results
Correct Answer: 3/2 years
Explanation:
Since Interest accumulates half yearly so effective rate = R/2 = 4/2 = 2.
And effective time is 2t.
? 6250 [1 + 2/100]2t = 6632.55
? (1 +2/100)2t = 663255/625000 = 132651/125000 = (51/50)3
? (51/50)2t = (51/50)3
? 2t =3
? t = 3/2 years
Correct Answer: Rs. 2205
Explanation:
For the quarterly interest,
Time = (6/12) year x 4 = 2 quarterly
Rate = 20/4 = 5%
(? On quarterly interest time is multiplied by 4 and rate is divided by 4)
Hence,required amount = Principal (1 + Rate/100)Time
= 2000(1 +5/10)2
= 2000(21/20)2
= Rs. 2205
Correct Answer: 6%
Explanation:
From question it is clear that the simple interest of rupees 225 for one year is 238.50 - 225.
So Rate = (simple interest x 100 )/( time x principle)
= {(238.50 - 225) x 100}/(225 x 1) % = 6%
Correct Answer: Rs. 3300
Explanation:
Compound interest = P {(1 + r/100)t - 1}
= 10105 { (1 +10/100)3 - 1}
=10105 {(11/10)3 - 1}
=10105 {1331/1000 - 1}
=10105(331/1000)
= 3344.755
= Rs. 3300(app.)
Correct Answer: 2 years
Explanation:
1600(1 +5/100)t = 1944.81
? (21/20)t =194481/160000 =(441/400)2 = (21/20)4
? T = 4( half years)
? Required time =2 years
Correct Answer: 4 years
Explanation:
? P(1 + r/100)t = A
? 390625(1 + 4/100)t = 456976
? (1 + 4/100)t = 456976/390625 =(26/25)4
? (26/25)t = (26/25)4
? t = 4
? The required time is 4 years.
Correct Answer: 5.062%
Explanation:
The amount of Rs. 100 in one year at compound interest at 5% per annum payable half yearly.
= Rs. 100(1 + 5/2 /100)2
=Rs. 100(102.5/100)2
=Rs. 100(1.025)2
=Rs. 105.0625
Thus, the nominal rate of 5% payable half yearly has the same effect as the rate of 5.0625 per cent would have, if payable yearly.
Hence 5.0625 per cent is called the effective annual rate 5% per annum payable half yearly.
Correct Answer: 6%
Explanation:
Let the rate be R% per annum.
Then,
1200 x (1 + R/100)2 = 1348.32
? (1 + R/100)2 =1348.32/1200 = 1.1236 = (1.06)2
? (1 + R/100) =1.06
? R/100 = 0.06
? R = 6%
Correct Answer: ? 38400
Explanation:
2P = P (1 + R/100) 5
? 24 P = P(1 + R/100)20
? The amount becomes 24 times
= 16 times and required amount = 2400 x 16 = ? 38400
Correct Answer: 15%
Explanation:
Interest on ? 1440 = ? 216 for the third year
? Rate percentage = (216 x 100)/(1440 x 1) = 15 %
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