1 Find the compound interest on Rs. 8000 at 4% per annum for 2 years, compounded annually.
- 632.80
- 650.00
- 652.80
- 672.80
Solution:
Answer: C
Explanation:
Principal Amount (P) = 8000
Interest Rate (r) = 4 %
Period (t) = 2 Years
Compounding Frequency (n) = 1
$=(8000\times (1+\frac{4}{100}{)}^{2})-8000$
$=652.80$
2 Find the compound interest on Rs. 8695 at 4% per annum for 3 years, compounded monthly.
- Rs. 1106.63
- Rs. 1126.63
- Rs. 1206.63
- Rs. 1236.63
Solution:
Answer: A
Explanation:
Principal Amount (P) = 8695
Interest Rate (r) = 4 %
Period (t) = 3 Years
Compounding Frequency (n) = 12
$=(8695\times (1+\frac{4}{100}{)}^{\mathrm{2\; \times \; 12}})-8695$
$=1106.63$
3 Calculate the future value of Rs. 4,000 invested at 7% for 5 years
- Rs. 5500.21
- Rs. 5510.00
- Rs. 5600.00
- Rs. 5610.21
Solution:
Answer: D
Explanation:
Principal Amount (P) = 4000
Interest Rate (r) = 7 %
Period (t) = 5 Years
Compounding Frequency (n) = 1
$=(4000\times (1+\frac{7}{100}{)}^{5})$
$=5610.21$