Test: Compound Interest- 2 - UPSC MCQ

# Test: Compound Interest- 2 - UPSC MCQ

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## 10 Questions MCQ Test CSAT Preparation - Test: Compound Interest- 2

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Test: Compound Interest- 2 - Question 1

### The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is

Detailed Solution for Test: Compound Interest- 2 - Question 1

P [1 + (r/100)]n  >  2P
⇒ P [1 + (20/100)]n  >  2P
[1 + (2/10) ]n  > 2
[12 / 10]n  > 2
[6/5]n  > 2
{6/5 * 6/5 * 6/5 * 6/5}  >  2
∴ n = 4

Test: Compound Interest- 2 - Question 2

### The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:

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Test: Compound Interest- 2 - Question 3

### Arun invested an amount of Rs. 2000 in a fixed deposit scheme for 2 years at compound interest rate 4 p.c.p.a. How much amount will Arun get on maturity of the fixed deposit?

Detailed Solution for Test: Compound Interest- 2 - Question 3

Test: Compound Interest- 2 - Question 4

Simple interest on a certain sum of money for 4 years at 5% per annum is half the compound interest on Rs. 3000 for 2 years at 10% per annum. The sum placed on simple interest is:

Detailed Solution for Test: Compound Interest- 2 - Question 4

C.I = P[(1 + r/100)n - 1]
C.I = 3000[(1 + 0.10)2 - 1]
= 3000(1.21 - 1)
⇒ 3000 * 0.21
⇒ 630
S.I = 630/2
⇒ 315
As we know that, P = (SI * 100)/(R * T)
⇒ (315 * 100)/(4 * 5)
⇒ 1575

Test: Compound Interest- 2 - Question 5

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:

Detailed Solution for Test: Compound Interest- 2 - Question 5

Let the sum be Rs. P

Test: Compound Interest- 2 - Question 6

The difference between simple interest and compound on Rs. 2400 for one year at 10% per annum reckoned half-yearly is:

Detailed Solution for Test: Compound Interest- 2 - Question 6

Test: Compound Interest- 2 - Question 7

The Simple interest on a certain sum for 2 years at 20% per annum is Rs. 80. The corresponding compound interest is

Detailed Solution for Test: Compound Interest- 2 - Question 7

Test: Compound Interest- 2 - Question 8

A sum amounts to Rs. 882 in 2 years at 5% compound interest. The sum is

Detailed Solution for Test: Compound Interest- 2 - Question 8

Compound interest = Amount -Principal
Amount = P(1 + R/100)N
882 = P(1+5/100)2
=  882 × 20/21 × 20/21
P = 800

Test: Compound Interest- 2 - Question 9

The compound interest on Rs. 20,480 at 6 1/4 % per annum for 2 years 73 days, is:

Detailed Solution for Test: Compound Interest- 2 - Question 9

Let's calculate the compound interest step-by-step:

Step 1: Convert the rate of interest to a decimal:

• 6 1/4% = 6.25% = 0.0625

Step 2: Convert the time period to years:

• 2 years and 73 days = 2 + (73/365) years = 2.2 years

Step 3: Calculate the amount using the compound interest formula:

• Amount = Principal * (1 + Rate/100)^Time
• Amount = 20480 * (1 + 0.0625)^2.2
• Amount ≈ 23409

Step 4: Calculate the compound interest:

• Compound Interest = Amount - Principal
• Compound Interest = 23409 - 20480
• Compound Interest = 2929

Therefore, the compound interest on Rs. 20,480 at 6 1/4% per annum for 2 years and 73 days is Rs. 2929.

So, the correct answer is option A: Rs. 2929.

Test: Compound Interest- 2 - Question 10

A sum put out at 4% compound interest payable half-yearly amounts to Rs. 13265.10 in 1 1/2 years. The sum is:

Detailed Solution for Test: Compound Interest- 2 - Question 10

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