Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit

Correct Answer: 5years

Explanation:

Rs.100 invested in compound interest becomes Rs.200 in 5 years.

The amount will double again in another 5 years.

i.e., the amount will become Rs.400 in another 5 years.

So, to earn another Rs.200 interest, it will take another 5 years.

Correct Answer: 8780.80

Explanation:

when interest is reckoned using compound interest, interest being compounded annually. The difference in the simple interest and compound interest for two years is on account of the interest paid on the first year's interest  Hence 12% of simple interest = 90 => simple interest =90/0.12 =750.

As the simple interest for a year = 750 @ 12% p.a., the principal =750/0.12 = Rs.6250.

If the principal is 6250, then the amount outstanding at the end of 3 years = 6250 + 3(simple interest on 6250) + 3 (interest on simple interest) + 1 (interest on interest on interest) = 6250 +3(750) + 3(90) + 1(10.80) = 8780.80.

Correct Answer: 4 years

Explanation:

P 1 + 20 100 n > 2P 

 

 

 

Now, (6/5 x 6/5 x 6/5 x 6/5) > 2.

 

 

 

So, n = 4 years.

Correct Answer: 5%

Explanation:

C.I =  P 1 + r 100 t - 1

 

594.5 =  5800 1 + r 100 2 - 1

  594 . 5 5800 + 1 = 1 + r 100 2

 

r 100 = 1 . 05 - 1 = 0 . 05 = > r = 5 % .

Correct Answer: Rs. 704

Explanation:

We know that,

$$\begin{gathered} S . I . = PTR 100 \\ ? P = S . I x 100 T x R \\ And also , \\ C . I = P 1 + R 100 n - 1 \end{gathered}$$

From given data, P = Rs. 8625

Now, C.I  =  $$\begin{gathered} 8625 1 + 4 100 2 - 1 \\ = 8625 26 25 2 - 1 \\ = 8625 676 625 - 1 \\ = 8625 x 51 625 \\ C . I = Rs . 703 . 80 \end{gathered}$$

Correct Answer: 6.09%

Explanation:

Amount of Rs. 100 for 1 year

when compounded half-yearly = Rs.[100*(1+3/100)^2]=Rs.106.09

Effective rate=(106.09-100)%=6.09%

 

Correct Answer: Rs. 1901

Explanation:

P = Rs. 15225, n = 9 months = 3 quarters, R = 16% p.a. per quarter.

 

Amount =  15225 x 1 + 4 100 3

 

= (15225 x 26/25 x 26/25 x 26/25) = Rs. 17126.05

 

=> C.I. = 17126 - 15625 = Rs. 1901.05.

Correct Answer: 11 percent

Correct Answer: Rs.500

Explanation:

Let the sum be Rs. P.

Then,[p(1+10/100)2-p]=525

Sum =Rs.2500

S.I.= Rs.(2500*5*4)/100

= Rs. 500

Correct Answer: 5387.42

Explanation:

The mathematical formula for calculating compound interest depends on several factors. These factors include the amount of money deposited called the principal, the annual interest rate (in decimal form), the number of times the money is compounded per year, and the number of years the money is left in the bank.

  F V = p 1 + r n n t

 

FV = Future value of the Deposit

 

p = Principal or Amount of Money deposited

 

r = Annual Interest Rate (in decimal form )

 

n = No of times compounded per year

 

t = time in years

F V = 4000 1 + 0 . 06 4 4 ( 5 )= 5387.42