Question : The compound interest of Rs. 30,000 at 7% per annum for a certain time is Rs. 4,347. The time is:
Option 1: 3 years
Option 2: 4 years
Option 3: 2 years
Option 4: 2.5 years
Correct Answer: 2 years
Solution : Sum, $P$ = Rs. 30,000 Rate, $R$ = 7% Compound Interest = Rs. 4,347 Let $n$ be the time. When compounded annually, Compound interest after n years = $P[(1+\frac{R}{100})^{n}–1]$, where $P$ is principal, $R$ is the rate of interest per annum compounded annually. So, 4347 = 30000$[(1+\frac{7}{100})^{n}–1]$ $⇒1.07^n = \frac{4347}{30000}+1 = 1.1449$ $⇒1.07^n = 1.07^2$ $\therefore n$ = 2 Hence, the correct answer is 2 years.
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Question : On a certain sum, the difference between compound interest and simple interest at 10% per annum for 2 years is Rs.250. The sum is _________.
Option 1: Rs.25,450
Option 2: Rs.26,550
Option 3: Rs.25,000
Option 4: Rs.26,000
Question : Rekha invested a sum of Rs. 12000 at 5% per annum compound interest. She received an amount of Rs. 13230 after $n$ years. Find $n$.
Option 1: 2.8 years
Option 2: 3 years
Option 3: 2.5 years
Option 4: 2 years
Question : On a certain sum of money, the simple interest for 2 years is Rs. 350 at the rate of 4% per annum. It was invested at compound interest at the same rate for the same duration as before, how much more interest would be earned?
Option 1: Rs. 3.50
Option 2: Rs. 7
Option 3: Rs. 14
Option 4: Rs. 35
Question : Find the difference between compound interest and simple interest when a sum of Rs. 15,625 is invested for 3 years at 4% per annum.
Option 1: Rs. 76
Option 2: Rs. 96
Option 3: Rs. 56
Option 4: Rs. 86
Question : A sum becomes Rs. 1,352 in 2 years at 4% per annum compound interest. The sum is:
Option 1: Rs. 1,225
Option 2: Rs. 1,270
Option 3: Rs. 1,245
Option 4: Rs. 1,250
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