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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
Ans - b
Explanation:
In this type of question we apply formula
Amount=P(1+R100)nAmount=169(1+4100)2Amount=169∗25∗2526∗26Amount=156.25
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What will be the compound interest on Rs. 25000 after 3 years at the rate of 12 % per annum?
a. Rs 10123.20
b. Rs 10123.30
c. Rs 10123.40
d. Rs 10123.50
Ans - a
Explanation:
= (25000×(1+12/100)^3)
= 25000×(28/25)^3
= 35123.20
So Compound interest will be 35123.20 - 25000
= Rs 10123.20
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A sum of money at simple interest amounts to Rs. 2240 in 2 years and to Rs. 2600 in 5 years. What is the principal amount?
a. 1000
b. 1500
c. 2000
d. 2500
Ans - c
Explanation:
SI for 3 year = 2600-2240 = 360
SI for 2 year 360/3 * 2 = 240
principal = 2240 - 240 = 2000
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A financier claims to be lending money at simple interest, But he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes......
a. 10.25%
b. 10%
c. 9.25%
d. 9%
Ans - a
Explanation:
Let the sum is 100.
As financier includes interest every six months, then we will calculate SI for 6 months, then again for six months as below:
SI for first Six Months = (100*10*1)/(100*2) = Rs. 5
Important: now sum will become 100+5 = 105
SI for last Six Months = (105*10*1)/(100*2) = Rs. 5.25
So amount at the end of year will be (100+5+5.25)
= 110.25
Effective rate = 110.25 - 100 = 10.25
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A person invested Rs. 100000 in a bank FDR @ 6% p.a. for 1 year. If interest is compounded on yearly basis, the amount payable shall be ......
a. 100300
b. 100600
c. 103000
d. 106000
Ans - d
Solution:
P = 100000
R = 6% yearly
T = 1 yr
Since compounding is annualy and its only 1-time investment, the formula to be used:
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FV = P * (1+R)^T
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So,
FV = 100000 * (1+0.06)^1
= 106000 Ans.
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A person invested Rs. 100000 in a bank FDR @ 6% p.a. for 1 year. If interest is compounded on half-yearly basis, the amount payable shall be ......
a. 100390
b. 100690
c. 103090
d. 106090
Ans - d
Solution:
P = 100000
R = 6% / 2 = 3% (since compounding is semi-annually, rate is divided by 2
T = 1 *2 = 2 (since compounding is semi-annually, time is multiplied by 2)
Since compounding is semi-annually and its only 1-time investment, the formula to be used:
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FV = P * (1+R)^T
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So,
FV = 100000 * (1+0.03)^2
= 106090 Ans.
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A person invested Rs. 100000 in a bank FDR @ 6% p.a. for 1 year. If interest is compounded on quarterly basis, the amount payable shall be ......
a. 101360
b. 106136
c. 106316
d. 103613
Ans - c
Solution:
P = 100000
R = 6% / 4 = 0.015 (since compounding is quarterly, rate is divided by 4)
T = 1 *4 = 4 (since compounding is quarterly, time is multiplied by 4)
Since compounding is quarterly and its only 1-time investment, the formula to be used:
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FV = P * (1+R)^T
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So,
FV = 100000 * (1+0.015)^4
= 106136 (paise rounded) Ans.
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