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- Question
If you deposit $4000 into an account paying 6% annual interest compounded quarterly, how much money will be in the account after 5 years ?
Options- A. 3387.42
- B. 4387.42
- C. 5387.42
- D. 6387.42
- Correct Answer
- 5387.42
ExplanationThe 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.
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
= 5387.42
- 1. The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is
Options- A. Rs.4000
- B. Rs.500
- C. Rs.600
- D. Rs.800 Discuss
- 2. At what rate of compound interest per annum will a sum of Rs 10000 become Rs 12321 in 2 years?
Options- A. 22 percent
- B. 11 percent
- C. 7 percent
- D. 15 percent Discuss
- 3. Find the C.I. on Rs. 15,225 for 9 months at 16% per annum compounded quarterly ?
Options- A. Rs. 1911
- B. Rs. 1909
- C. Rs. 1901
- D. Rs. 1907 Discuss
- 4. The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is
Options- A. 6.06%
- B. 6.07%
- C. 6.08%
- D. 6.09% Discuss
- 5. 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
Options- A. Rs.8820
- B. Rs.8620
- C. Rs.8520
- D. Rs.8320 Discuss
- 6. Calculate the amount on Rs. 1875 for 2 year at 4% per annum, compounded yearly.
Options- A. Rs. 676
- B. Rs. 776
- C. Rs. 1778
- D. Rs. 2028 Discuss
- 7. A woman invests Rs. 2000 at the start of each year at 5% C.I. per annum. How much will her investments be at the end of the 2nd year?
Options- A. Rs. 4305
- B. Rs. 430
- C. Rs. 4355
- D. Rs. 4350 Discuss
- 8. What is the compound interest (in Rs) for 1 year on a sum of Rs 20000 at the rate of 40% per annum compounding half yearly?
Options- A. 8000
- B. 8650
- C. 8750
- D. 8800 Discuss
- 9. 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
- 10. 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
Compound Interest problems
Search Results
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: 11 percent
Correct Answer: Rs. 1901
Explanation:
P = Rs. 15225, n = 9 months = 3 quarters, R = 16% p.a. per quarter.
Amount =
= (15225 x 26/25 x 26/25 x 26/25) = Rs. 17126.05
=> C.I. = 17126 - 15625 = Rs. 1901.05.
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.8820
Explanation:
Amount = =Rs.8820
Correct Answer: Rs. 2028
Explanation:
Amount = P(1 + r/100)^t
Amount = 1875(1 + 4/100)^2
Amount = 1875(104/100)(104/100)
Amount = 2028
Correct Answer: Rs. 4305
Correct Answer: 8800
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. 693.6
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