Question : The compound interest on Rs. 20,000 at 5% per annum, compounded annually, is Rs. 2,050. What is the time period?
Option 1: 2.5 years
Option 2: 2 years
Option 3: 4 years
Option 4: 3 years
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Correct Answer: 2 years
Solution : Let the time be $T$. Principal = Rs. 20,000 We know, $\text{Compound interest}=\text{Principal}×(1+\frac{\text{Rate}}{100})^{\text{Time}}-\text{Principal}$ Given that the compound interest is Rs. 2,050. ⇒ $2050 = 20000 × (1 + 0.05)^T – 20000$ ⇒ $20000 × (1.05)^T = 22050$ ⇒ $(\frac{21}{20})^T=\frac{22050}{20000}$ ⇒ $(\frac{21}{20})^T=\frac{441}{400}$ ⇒ $(\frac{21}{20})^T=(\frac{21}{20})^2$ ⇒ $T = 2$ Hence, the correct answer is 2 years.
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Question : What is the difference between the compound interest and the simple interest on Rs. 2,000 at 10% interest per annum for 2 years, if, for compound interest, interest is compounded annually?
Option 1: Rs. 20
Option 2: Rs. 40
Option 3: Rs. 80
Option 4: Rs. 60
Question : The compound interest on Rs. 1,00,000 at 25% per annum for 2 years compounded annually is:
Option 1: Rs. 57,650
Option 2: Rs. 50,250
Option 3: Rs. 56,250
Option 4: Rs. 52,255
Question : The difference between the simple interest and the compound interest at the same rate for INR 32,000 for 2 years is 80. What is the rate of interest, if in the case of compound interest, interest is compounded annually?
Option 1: 8% per annum
Option 2: 2% per annum
Option 3: 5% per annum
Option 4: 12% per annum
Question : What is the compound interest on Rs. 8400 for 2 years at 10% per annum compounded annually?
Option 1: Rs. 10164
Option 2: Rs. 840
Option 3: Rs. 5064
Option 4: Rs. 1764
Question : The compound interest on INR 18,000 at 7% per annum, compounded annually, is INR 1,260. What is the period?
Option 1: 1 year
Option 3: 3 years
Option 4: 4 years
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