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- Question
At 3% annual interest compounded monthly, how long will it take to double your money?
Options- A. 20.1
- B. 21.1
- C. 22.1
- D. 23.1
- Correct Answer
- 23.1
ExplanationAt first glance it might seem that this problem cannot be solved because we do not have enough
information. It can be solved as long as you double whatever amount you start with. If we start with
$100, then P = $100 and FV = $200.FV=P(1+r/n)^nt
- 1. Mr. Gupta borrowed a sum of money on compound interest. What will be the amount to be repaid if he is repaying the entire amount at the end of 2 years? I. The rate of interest is 5 p.c.p.a. II. Simple interest fetched on the same amount in one year is Rs. 600. III. The amount borrowed is 10 times the simple interest in 2 years.
Options- A. .I only
- B. III only
- C. I or II
- D. II and Either I or III only Discuss
- 2. What will Rs.1500 amount to in three years if it is invested in 20% p.a. compound interest, interest being compounded annually?
Options- A. Rs.2592
- B. Rs.2492
- C. Rs.2352
- D. Rs.2352 Discuss
- 3. If a sum of Rs.12500 is invested for 1 year at 12% per annum interest being compounded semi-annually, then interest earned is
Options- A. Rs.1505
- B. Rs.1535
- C. Rs.1545
- D. Rs.1550 Discuss
- 4. Mr. Mike borrowed Rs. 8500 at 4% per annum C.I. The C.I. compounded annally for 2 years is :
Options- A. Rs. 9139.6
- B. Rs. 639.6
- C. Rs. 9193.6
- D. Rs. 693.6 Discuss
- 5. Shawn invested one half of his savings in a bond that paid simple interest for 2 years and received Rs.550 as interest. He invested the remaining in a bond that paid compound interest, interest being compounded annually, for the same 2 years at the same rate of interest and received Rs.605 as interest. What was the value of his total savings before investing in thesetwo bonds?
Options- A. Rs.2543
- B. Rs.2534
- C. Rs.2546
- D. Rs.2750 Discuss
- 6. Find the principal if the interest compounded at the rate of 10% per annum for two years is Rs. 420 ?
Options- A. Rs. 2000
- B. Rs. 2100
- C. Rs. 1900
- D. Rs. 2150 Discuss
- 7. Albert invested Rs. 8000 in a scheme for 2 years at compound interest rate 5% p.a. How much amount will Albert get on maturity of the fixed deposit ?
Options- A. Rs. 8840
- B. Rs. 8800
- C. Rs. 8810
- D. None Discuss
- 8. An article costs Rs 50 presently. The rate of inflation is 300%. What will be cost of this article after two years?
Options- A. Rs 200
- B. Rs 600
- C. Rs 800
- D. Rs 1000 Discuss
- 9. The compound interest earned in two years at 12% per annum is Rs 10176. What is the sum (in Rs) invested?
Options- A. 50000
- B. 60000
- C. 40000
- D. 80000 Discuss
- 10. If you deposit $8000 into an account paying 7% annual interest compounded quarterly, how long until there is $12400 in the account?
Options- A. 2.3
- B. 3.3
- C. 4.3
- D. 6.3 Discuss
Compound Interest problems
Search Results
Correct Answer: II and Either I or III only
Explanation:
I. gives, Rate = 5% p.a.
II. gives, S.I. for 1 year = Rs. 600.
III. gives, sum = 10 x (S.I. for 2 years).
Now I, and II give the sum.
For this sum, C.I. and hence amount can be obtained.
Thus, III is redundant.
Again, II gives S.I. for 2 years = Rs. (600 x 2) = Rs. 1200.
Now, from III, Sum = Rs. (10 x 1200) = Rs . 12000.
Thus,Rate = =5%
Thus, C.I. for 2 years and therefore, amount can be obtained.
Thus, I is redundant.
Hence, I or III redundan
Correct Answer: Rs.2592
Explanation:
The usual way to find the compound interest is given by the formula A = .p(1+r/100)^n
In this formula,
A is the amount at the end of the period of investment
P is the principal that is invested
r is the rate of interest in % p.a
And n is the number of years for which the principal has been invested.
In this case, it would turn out to be A =1500(1+20/100)^3
= 2592.
Correct Answer: Rs.1545
Correct Answer: Rs. 693.6
Correct Answer: Rs.2750
Explanation:
Shawn received an extra amount of (Rs.605 ? Rs.550) Rs.55 on his compound interest paying bond as the interest that he received in the first year also earned interest in the second year.
The extra interest earned on the compound interest bond = Rs.55
The interest for the first year =550/2 = Rs.275
Therefore, the rate of interest = = 20% p.a.
20% interest means that Shawn received 20% of the amount he invested in the bonds as interest.
If 20% of his investment in one of the bonds = Rs.275, then his total investment in each of the bonds = = 1375.
As he invested equal sums in both the bonds, his total savings before investing = 2 x 1375 =Rs.2750.
Correct Answer: Rs. 2000
Explanation:
Given,
Compound rate, R = 10% per annum
Time = 2 years
C.I = Rs. 420
Let P be the required principal.
A = (P+C.I)
Amount, A =
(P+C.I) =
(P+420) = P[11/10][11/10]
P-1.21P = -420
0.21P = 420
Hence, P = 420/0.21 = Rs. 2000
Correct Answer: None
Explanation:
Amount =
= 8000 x 21/20 x 21/20
= Rs. 8820
Correct Answer: Rs 800
Explanation:
Correct Answer: 40000
Correct Answer: 6.3
Explanation:
FV=P(1+r/n)^nt
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