0
Q:

What is the compound interest earned at the end of 3 years?

I. Simple interest earned on that amount at the same rate and for the same period is Rs. 4500.

II.The rate of interest is 10 p.c.p.a.

III.Compound interest for 3 years is more than the simple interest for that period by Rs.465.

A) I and II only B) II and III only
C) I and III only D) Either II or III only

Answer:   D) Either II or III only



Explanation:

 

 

 

 

 

 

I. gives, S.I for 3 years = Rs. 4500.

 

 

 

II. gives, Rate = 10% p.a.

 

 

 

III. gives, (C.I.) - (S.I.) = Rs. 465.

 

 

 

Clearly, using I and III we get C.I. = Rs. (465 + 4500).

 

 

 

Thus, II is redundant.

 

 

 

Also, from I and II, we get sum =

 

 

 

100 x 4500

 

 

 

= 15000.

 

 

 

10 x 3

 

 

 

Now C.I. on Rs. 15000 at 10% p.a. for 3 years may be obtained.

 

 

 

Thus, III is redundant.

 

 

 

Either II or III is redundant.

Q:

Given a principal of $12,000 with a compound amount of $17,631.94 and interest rate of 8% compounded anually,what is the time peroid in years?

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

Explanation:

M=P(1+i)^n

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0 2588
Q:

Bob Kashir deposited $6000 in a 4-year certificate of deposite paying 5% compounded daily.He withdrew the money 15 months later.The passbook rate at his bank is 3.5 % compounded daily.Find his amount of interest

A) 5678 B) 4563
C) 4329 D) 6210.73
 
Answer & Explanation Answer: D) 6210.73

Explanation:

Bob receives 15-3 = 12 months of 3.5 % interest compounded daily

 

 

 

M=P(1+i/365)^365n

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0 2792
Q:

Find the compound amount if $1200 is deposited at 8% interest for 11 years if interest is compounded continuously

A) 1456 B) 1456
C) 1693.08 D) 1890
 
Answer & Explanation Answer: C) 1693.08

Explanation:

M=Pe^yr

 

2893.08

 

I=M-P

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0 2557
Q:

Find the compound amount if $2900 is deposited at 5% interest for 10 years if interest is compounded daily

A) 4781.13 B) 5781
C) 3456 D) 4567
 
Answer & Explanation Answer: A) 4781.13

Explanation:

M=P(1+i/365)^365n

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0 2274
Q:

$32000 is invested at 10% for 2 years.Find the interest compounded Yearly

A) 4720 B) 5720
C) 6720 D) 7720
 
Answer & Explanation Answer: C) 6720

Explanation:

M=P(1+i)^n

 

I=M-P

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0 2097
Q:

Example:$800 is invested at 7% for 6 years.Find the interest compounded anually?

A) 400.58 B) 300.58
C) 200.58 D) 100.58
 
Answer & Explanation Answer: A) 400.58

Explanation:

M=P(1+i)^n

 

I=M-P

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0 2523
Q:

Dianna deposits $725 into a savings account that pays 2.3% simple annual interest. How much interest will Dianna earn after 18 months?

A) 23.01 B) 24.01
C) 25.01 D) 26.01
 
Answer & Explanation Answer: C) 25.01

Explanation:

I = Prt

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0 3423
Q:

A sum of money becomes 7/6 of itself in 3 years at a certain rate of simple interst. The rate per annum 

A) 5% B) 5.5%
C) 6% D) 6.5%
 
Answer & Explanation Answer: B) 5.5%

Explanation:

sum = x. amount =7x/6.

S.I. =(7x/6 – x) = x/6 ; time = 3 years

Rate =[ (100 * x) / (x * 6 * 3)]% = 5.5%

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