Question : What is the present value of INR 9,360 at an interest rate of 20% at the end of two years compounded annually?
Option 1: INR 6,400
Option 2: INR 6,450
Option 3: INR 6,500
Option 4: INR 6,550
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Correct Answer: INR 6,500
Solution : Let the principal amount be Rs. $P$ Compound Interest rate, $r$ = 20% Time period, $T$ = 2 years Now, the total amount after Compound Interest = Rs. 9360 So, $P(1+\frac{r}{100})^T$ = 9360 ⇒ $P= \frac{9360}{(1+\frac{20}{100})^2}$ ⇒ P = 6500 Hence, the correct answer is INR 6,500.
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Question : What is the present value of the sum if the interest compounded at the rate of 18% per annum for two years is 981?
Option 1: INR 2,800
Option 2: INR 2,500
Option 3: INR 3,600
Option 4: INR 2,400
Question : A deposited INR 1,56,250 at 8% simple interest for 2 years. How much more money will A have in his account at the end of two years, if at the same rate of interest, the sum is invested in compound interest, compounded annually?
Option 1: INR 1,740.90
Option 2: INR 1,000
Option 3: INR 2,000
Option 4: INR 1,540.40
Question : The compound interest accrued on a sum of INR 20,000 at the end of 2 years compounded annually is INR 2,050. Find the compound interest at the end of the 3rd year.
Option 1: INR 3,153.50
Option 2: INR 2852.50
Option 3: INR 3,152.50
Option 4: INR 3,154.50
Question : What is the approximate present value (in INR lakh) of an income of INR 2.1 lakh to be received after 2 years if the rate of interest is 5% per annum compounded annually?
Option 1: 1.815
Option 2: 1.975
Option 3: 1.725
Option 4: 1.905
Question : Radha deposited INR 1,60,000 at a 10% rate of Compound Interest per annum for two years. If the interest is compounded semi-annually, then what is the Compound Interest (in INR)?
Option 1: 16,400
Option 2: 34,481
Option 3: 74,256
Option 4: 33,600
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