2
Q:

Determine the nominal rate of interest if:

The periodic rate is 0.83% per month

A) 7% B) 8%
C) 9% D) 10%

Answer:   D) 10%



Explanation:

j=mi

Subject: Compound Interest
Exam Prep: Bank Exams
Job Role: Bank PO
Q:

What is the least number of complete years in which a sum of money put out at 40% annual compound interest will be more than trebled?

A) 3 B) 4
C) 5 D) 6
 
Answer & Explanation Answer: B) 4

Explanation:
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Exam Prep: Bank Exams

6 1398
Q:

Calculate the amount on Rs. 1875 for 2 year at 4% per annum, compounded yearly.

A) Rs. 676 B) Rs. 776
C) Rs. 1778 D) Rs. 2028
 
Answer & Explanation Answer: D) Rs. 2028

Explanation:

Amount = P(1 + r/100)^t
Amount = 1875(1 + 4/100)^2
Amount = 1875(104/100)(104/100)
Amount = 2028

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Exam Prep: Bank Exams

9 2276
Q:

An article costs Rs 50 presently. The rate of inflation is 300%. What will be cost of this article after two years?

A) Rs 200 B) Rs 600
C) Rs 800 D) Rs 1000
 
Answer & Explanation Answer: C) Rs 800

Explanation:

A = P(1 + r/100)n   50(1 + 300/100)2   50(4)2  800

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Exam Prep: Bank Exams

5 1815
Q:

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 12% per annum is Rs 900. What is the value of given sum (in Rs)?

A) 125000 B) 250000
C) 62500 D) 187500
 
Answer & Explanation Answer: C) 62500

Explanation:
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4 949
Q:

At what rate of compound interest per annum will a sum of Rs 10000 become Rs 12321 in 2 years?

A) 22 percent B) 11 percent
C) 7 percent D) 15 percent
 
Answer & Explanation Answer: B) 11 percent

Explanation:
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Exam Prep: AIEEE , Bank Exams , CAT

11 1293
Q:

What is the Compound interest on Rs. 5000 in 3 years, if the rate of interest is 4% for the first year, 3% for the second year and 2% for the third year?

A) Rs. 435.21 B) Rs. 453.12
C) Rs. 436.12 D) Rs. 463.12
 
Answer & Explanation Answer: D) Rs. 463.12

Explanation:
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Exam Prep: CAT , Bank Exams , AIEEE

2 1187
Q:

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?

A) 8000 B) 8650
C) 8750 D) 8800
 
Answer & Explanation Answer: D) 8800

Explanation:
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Exam Prep: Bank Exams

8 1183
Q:

Mr. Mike borrowed Rs. 8500 at 4% per annum C.I. The C.I. compounded annally for 2 years is :

A) Rs. 9139.6 B) Rs. 639.6
C) Rs. 9193.6 D) Rs. 693.6
 
Answer & Explanation Answer: D) Rs. 693.6

Explanation:
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6 1360