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- Question
Find the time to double your investment at 6%
Options- A. 10years
- B. 11years
- C. 12years
- D. 13years
- Correct Answer
- 12years
ExplanationM=p(1+i)^n
- 1. The effective annual rate of interest corresponding to nominal rate of 6% per annum payable half yearly is
Options- A. 5%
- B. 6%
- C. 7%
- D. 6.09% Discuss
- 2. Josh borrowed $250 from his mother to buy an electric scooter. Josh will pay her back in 1 year with 3% simple annual interest. How much interest will Josh pay?
Options- A. 7.50
- B. 8.50
- C. 9.50
- D. 10.50 Discuss
- 3. Find the effective rate of interest for an investment that earns 5 1/2% per year, compounded continuously
Options- A. 5.65%
- B. 5.75%
- C. 5.85%
- D. 5.95% Discuss
- 4. What will be compounded amount? I. Rs. 200 was borrowed for 192 months at 6% compounded annually. II. Rs. 200 was borrowed for 16 years at 6%.
Options- A. I alone sufficient while II alone not sufficient to answer
- B. II alone sufficient while I alone not sufficient to answer
- C. Either I or II alone sufficient to answer
- D. Both I and II are not sufficient to answer Discuss
- 5. The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
Options- A. 2
- B. 3
- C. 4
- D. 5 Discuss
- 6. The periodic interest rate corresponding to: 9.75% compounded semiannually
Options- A. 4.875
- B. 3.785
- C. 4.865
- D. 4.975 Discuss
- 7. Mr. and Mrs. Espedido?s property taxes, amounting to $2450, are due on July 1.What amount should the city accept if the taxes are paid eight months in advance and the city can earn 6% compounded monthly on surplus funds?
Options- A. 2354.17
- B. 2354
- C. 2376
- D. 2389 Discuss
- 8. Two payments of $10,000 each must be made one year and four years from now. If money can earn 9% compounded monthly, what single payment two years from now would be equivalent to the two scheduled payments?
Options- A. 19296
- B. 19396
- C. 19496
- D. 19596 Discuss
- 9. The population of a rural region is expected to fall by 2% per year for the next 10 years. If the region?s current population is 100,000, what is the expected population 10 years from now?
Options- A. 81707
- B. 91707
- C. 61707
- D. 71707 Discuss
- 10. If Rs. 10000 amounts to Rs. 11664 invested in compound interest(compounded annually) for two years then the annual rate of compound interest is
Options- A. 10%
- B. 9%
- C. 8%
- D. 6% Discuss
Compound Interest problems
Search Results
Correct Answer: 6.09%
Explanation:
amount=[100(1+3/100)^2]=Rs.106.09
Correct Answer: 7.50
Explanation:
I=prt/100
Correct Answer: 5.65%
Explanation:
We are not given a value of P in this problem, so either pick a value
for P and stick with that throughout the problem, or just let P = P.
We have that t = 1, and r = .055. To find the effective rate of interest,
first find out how much money we have after one year:
A = Pert
A = Pe(.055)(1)
A = 1.056541P.
Therefore, after 1 year, whatever the principal was, we now have 1.056541P.
Next, find out how much interest was earned, I, by subtracting the initial amount of money from the final amount:
I = A ? P
= 1.056541P ? P
= .056541P.
Finally, to find the effective rate of interest, use the simple interest formula, I = Prt. So,
I = Pr(1) = .056541P
.056541 = r.
Therefore, the effective rate of interest is 5.65%
Correct Answer: Either I or II alone sufficient to answer
Explanation:
I. Amount =
II. Amount =
Thus, I as well as II gives the answer.
Correct Answer: 2
Explanation:
Amount = Rs. (30000 + 4347) = Rs. 34347
(1+7/100)^n=34347
Correct Answer: 4.875
Explanation:
i=j/m
Correct Answer: 2354.17
Explanation:
i=j/m
PV= FV(1+ i)^-n
Correct Answer: 19296
Explanation:
The single equivalent payment will be PV + FV.
FV = Future value of $10,000, 12 months later
$10,000 *(1.0075)/12
$10,938.07
PV= Present value of $10,000, 24 months earlier
$10,000/(1.0075)24
$8358.31
The equivalent single payment is
$10,938.07 + $8358.31 = $19,296.38
Correct Answer: 81707
Explanation:
i=j/m
FV = PV(1 + i)^n
Correct Answer: 8%
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