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What will be the difference between simple and compound interest @ 10% per annum on the sum of Rs 1000 after 4 years
Rs 63.10
Rs 64.10
Rs 65.10
Rs 62.10
Answer with explanation
Answer: Option BExplanation
So the difference between simple interest and compound interest will be 464.10 – 400 = 64.10
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The compound interest accrued on an amount of Rs.44000 at the end of two years is Rs.1193.60. What would be the simple interest accrued on the same amount at the same rate in the same period?
Rs.10,560
Rs.10,280
Rs.10,840
Rs.10,720
Answer with explanation
Answer: Option AExplanation
Let the rate of interest be R% p.a.
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What will be the amount if a sum of Rs. 10000 is placed at compound interest for 3 years while rate of interest for the first, second and third years is 2, 5 and 10 percent, respectively?
Rs. 11231
Rs. 11658
Rs. 11781
Rs. 11244
Answer with explanation
Answer: Option CExplanation
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The compound interest on a sum of money for 2 years is rs.832 and the simple interest on the same sum for the same period is rs.800 .the difference between the compound interest and simple interest for 3 years
Rs.66.56
Rs.90
Rs.48
Rs.98.56
Answer with explanation
Answer: Option DExplanation
Given that simple interest for 2 years is Rs.800
i.e., Simple interest for 1st year is Rs.400
and simple interest for 2nd year is also Rs.400
Compound interest for 1st year will be 400
and Compound interest for 2nd year will be 832 – 400 = 432
you can see that compound interest for 2nd year is more than simple interest for 2nd year by 432 – 400 = Rs.32
i.e, Rs. 32 is the interest obtained for Rs.400 for 1 year
Difference between compound and simple interest for the 3rd year
= Simple Interest obtained for Rs.832
Total difference between the compound and simple interest for 3 years
= 32 + 66.56 = Rs.98.56
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Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:
Rs. 2000
Rs. 1550
Rs. 1750
Rs. 1650
Answer with explanation
Answer: Option CExplanation
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If the difference between the simple interest and compound interests on some principal amount at 20% for 3 years is Rs. 48, then the principal amount is
400
375
636
650
Answer with explanation
Answer: Option BExplanation
For three years
Sum = Difference x (100)^3 / r^2(300 + r)
====== >>>> 48 x (100)^3 / 20^2 (300 + 20)
======>>>> Rs. 375
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If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200, find the compound interest on the same sum for the same period at the same rate.
1281
1271
1291
1261
Answer with explanation
Answer: Option DExplanation
Clearly, Rate = 5% p.a., Time = 3 years, S.I.= Rs. 1200. . .
So principal= RS [100*1200] / 3*5 =RS 8000
Amount = Rs. 8000 x [1 +5/100]^3 – = Rs. 9261.
.. C.I. = Rs. (9261 – 8000) = Rs. 1261.
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If Rs. 7200 amounts to Rs.10368 at compound interest in a certain time, then Rs. 7200 amounts to what in half of the time?
8800
8640
8520
8600
Answer with explanation
Answer: Option BExplanation
Let rate = R% and time = n year
Then, 10368 =7200(1+R/100)n
⇒ (1+R/100)n = 10368/7200 = 1.44
∴ (1 + R/100)n/2 = √1.44 = 1.2
∴ Required amount for n/2 yr
= 7200(1+ R/100)n/2
= 7200 x 1.2 = Rs. 8640
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Find the compound interest on Rs.16,000 at 20% per annum for 9 months, compounded quarterly
Rs 2521
Rs 2523
Rs 2522
Rs 2520
Answer with explanation
Answer: Option CExplanation
Please remember, when we have to calculate C.I. quarterly then we apply the following formula if n is the number of years
Principal = Rs.16,000;
Time=9 months = 3 quarters;
Rate = 20%, it will be 20/4 = 5%
So let’s solve this question now,
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The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:
600
400
300
500
Answer with explanation
Answer: Option DExplanation
Let the sum be Rs. P.
Amount after 2 years at 10% per annum when interest is compounded annually
Given that compound interest = 525
Simple interest on the same sum(Rs.2500) for 4 years at 5%
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The difference between the simple interest on a certain sum at the rate of 10%per annum for 2 years and compound interest which is compounded every 6 months is Rs.124.05. what is the principal sum
Rs. 4000
Rs. 6000
Rs. 8000
Rs. 10000
Answer with explanation
Answer: Option CExplanation
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