21
Q:

# If you deposit \$4000 into an account paying 6% annual interest compounded quarterly, how much money will be in the account after 5 years ?

 A) 3387.42 B) 4387.42 C) 5387.42 D) 6387.42

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.

$FV=p1+rnnt$

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

$FV=40001+0.0644(5)$= 5387.42

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

If Rs. 2,000 is invested at the rate of 20% per annum, compounded half-yearly, then the amount after 18 months will be:

 A) Rs.2628 B) Rs.2662 C) Rs.2600 D) Rs.3200

Explanation:

Filed Under: Compound Interest
Exam Prep: Bank Exams

2 676
Q:

Calculate the principal if an amount of Rs. 441 is received on compound interest at the rate of 5% per annum after 2 years.

 A) Rs.400 B) Rs.390 C) Rs.380 D) Rs.350

Explanation:

Filed Under: Compound Interest
Exam Prep: Bank Exams

2 501
Q:

Gitesh took a loan for 4 years at 5% Compound Interest. If the total interest paid was Rs. 431.01, Calculate the principal.

 A) Rs. 2000 B) Rs. 2050 C) Rs. 2100 D) Rs. 2150

Explanation:

Filed Under: Compound Interest
Exam Prep: Bank Exams

0 454
Q:

A sum of Rs 20000 becomes Rs 32000 in 12 years, when invested in a scheme of simple interest. If the same sum is invested in a scheme of compound interest with same yearly interest rate (compounding of interest is done yearly), then what will be the amount (in Rs) after 2 years?

 A) 21750 B) 22050 C) 23250 D) 24650

Explanation:

Filed Under: Compound Interest
Exam Prep: Bank Exams

0 390
Q:

A sum of Rs 4000 becomes Rs 5800 in 3 years, when invested in a scheme of simple interest. If the same sum is invested in a scheme of compound interest with same yearly interest rate (compounding of interest is done yearly), then what will be the amount (in Rs) after 2 years?

 A) 4430 B) 5450 C) 5290 D) 4970

Explanation:

Filed Under: Compound Interest
Exam Prep: Bank Exams

1 420
Q:

The maturity value of a certain sum after two years at 20% p.a. interest compounded annually is Rs. 14,400/-. Find the Principal amount.

 A) Rs.9000 B) Rs.9500 C) Rs.10,000 D) Rs.10,500

Explanation:

Filed Under: Compound Interest
Exam Prep: Bank Exams

1 421
Q:

Shams invested Rs. 5000 at 10% per annum compound interest. After n years, Shams received Rs. 1655 more. Find the value of n.

 A) 3 years B) 4 years C) 2 years D) 1 year

Explanation:

Filed Under: Compound Interest
Exam Prep: Bank Exams

4 879
Q:

A sum of Rs 6000 becomes Rs 7200 in 2 years, when invested in a scheme of simple interest. If the same sum is invested in a scheme of compound interest with same yearly interest rate (compounding of interest is done yearly), then what will be the amount (in Rs) after 3 years?

 A) 7434 B) 8244 C) 7864 D) 7986