1
Q:

An amount of 5,000 is invested at a fixed rate of 8 per cent per annum. What amount will be the value of the investment in five years time, if the interest is compounded every six months?

A) 7401.22 B) 3456
C) 4567 D) 7890

Answer:   A) 7401.22



Explanation:

With slight modifications, the basic formula can be made to deal with compounding at intervals other than annually.

 

Since the compounding is done at six-monthly intervals, 4 per cent (half of 8 per cent) will be added to the value on each occasion.

 

Hence we use r = 0.04. Further, there will be ten additions of interest during the five years, and so n = 10. The formula now gives:

 

V = P(1 + r)10 = 5,000 x (1.04)10 = 7,401.22

 

Thus the value in this instance will be £7,401.22.

 

In a case such as this, the 8 per cent is called a nominal annual

 

rate, and we are actually referring to 4 per cent per six months.

Q:

What is the total earning after 2 years from Rs.18,750 on variable compound interest if the rate of interest for the first 4 year is 4% and for the second, it is 8%?

A) ₹ 1,740 B) ₹ 1,760
C) ₹ 1,670 D) ₹ 2,310
 
Answer & Explanation Answer: D) ₹ 2,310

Explanation:
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1 1650
Q:

The simple interest on a sum of Rs.50,000 at the end of two years is Rs.4,000. What would be the compound interest on the same sum at the same rate for the same period ?

 

A) 4,040   B) 4,080  
C) 4,008   D) 8,000  
 
Answer & Explanation Answer: B) 4,080  

Explanation:
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0 1658
Q:

Rs. 775 invested for 6 years gives an interest of Rs. 372. The rate of simple interest per annum is:

 

A) 8% B) 7%
C) 9% D) 7.5 %
 
Answer & Explanation Answer: A) 8%

Explanation:
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0 261
Q:

In how many wars will an amount be doubled at 28.75% annual rate of interest?

 

A) 3.00 B) 3.90
C) 3.47 D) 6.00
 
Answer & Explanation Answer: C) 3.47

Explanation:
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0 389
Q:

If in 13 years a fixed sum doubles at simple interest, what will be the interest rate per year? (Correct to two decimal places)

 

A) 8.69%   B) 7.69%  
C) 7.29%   D) 7.92%  
 
Answer & Explanation Answer: B) 7.69%  

Explanation:
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0 145
Q:

The rate of simple interest on a sum of money is 5% p.a. for the first 4 years, 8% p.a. for the next 3 years and 10% p.a. for the period beyond 7 years. If the simple interest accrued by the sum over a period of 10 years is ₹1,850, then the sum is:

 

A) ₹2,750 B) ₹1,650
C) ₹2,500 D) ₹1,500
 
Answer & Explanation Answer: C) ₹2,500

Explanation:
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2 289
Q:

45-15

A) 25 B)
C) D)
 
Answer & Explanation Answer: A) 25

Explanation:
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0 239
Q:

When two equal amounts are deposited for 5 years and 3 years at the rate of 7% and 9% per annum respectively, and the difference of their simple interest is Rs 475. Then find the deposited amount.

 

A) Rs. 5,937.5 B) Rs. 5,992.5  
C) Rs. 5,837.5 D) Rs. 6,037.5
 
Answer & Explanation Answer: A) Rs. 5,937.5

Explanation:
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1 240