Ques. A man saves Rs 200 at the end of each year and lends the money at 5% compound interest. How much will it become at the end of 3 years.

Rs 662

Rs 662.01

Rs 662.02

Rs 662.03

Answer And Explanation

Answer: Option C

Explanation:

=[200(21/20×21/20×21/20)+200(21/20×21/20)+200(21/20)]

=662.02

Ques. Find compound interest on Rs. 7500 at 4% per annum for 2 years, compounded annually

Rs 312

Rs 412

Rs 512

Rs 612

Answer And Explanation

Answer: Option D

Explanation:

Please apply the formula

Amount=P(1+R/100)^n

C.I. = Amount – P

The present worth of Rs.169 due in 2 years at 4% per annum compound interest is

Rs 155.25

Rs 156.25

Rs 157.25

Rs 158.25

Answer And Explanation

Answer: Option B

Explanation:

In this type of question we apply formula

Amount=P/(1+R/100)^n

Amount=169(1+4/100)^2

Amount=169∗25∗25/26∗26

Amount=156.25

Ques. At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years

3%

4%

5%

6%

Answer And Explanation

Answer: Option D

Explanation:

Let Rate will be R%

1200(1+R/100)^2=134832/100

(1+R/100)^2=134832/120000

(1+R/100)^2=11236/10000

(1+R100)=106100

=>R=6%

Ques. The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is

4 years

5 years

6 years

7 years

Answer: Option A

Explanation:

As per question we need something like following

P(1+R/100)^n > 2P

(1+20/100)^n > 2

(6/5)^n > 2

6/5×6/5×6/5×6/5 > 2

So answer is 4 years

In what time will Rs.1000 become Rs.1331 at 10% per annum compounded annually

2 Years

3 Years

4 Years

5 Years

Answer And Explanation

Answer: Option B

Explanation:

Principal = Rs.1000;

Amount = Rs.1331;

Rate = Rs.10%p.a.

Let the time be n years then,

1000(1+10/100)^n=1331

(11/10)^n=1331/1000

(1110)^3=1331/1000

So answer is 3 years

If the simple interest on a sum of money for 2 years at 5% per annum is Rs.50, what will be the compound interest on same values

Rs.51.75

Rs 51.50

Rs 51.25

Rs 51

Answer: Option C

Explanation:

S.I.=P∗R∗T/100

P=(50∗100)/5∗2=500

Amount=500(1+5/100)^2

500(21/20∗21/20)=551.25

C.I.=551.25−500

=51.25

Ques. The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs 1. Find the sum

Rs 600

Rs 625

Rs 650

Rs 675

Answer: Option B

Explanation:

Let the Sum be P

S.I. = P∗4∗2/100=2P/25

C.I. = P(1+4/100)^2−P

=(676P/625)−P

=51P/625

As, C.I. – S.I = 1

=>51P/625−2P/25=1

=>(51P−50P)625=1

P=625