Question : A sum of money becomes INR 11,880 after 4 years and INR 17,820 after 6 years on compound interest, if the interest is compounded annually. What is the half of the sum (in INR)?
Option 1: 2,410
Option 2: 2,530
Option 3: 2,640
Option 4: 2,750
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Correct Answer: 2,640
Solution : Let the rate of interest per annum be $R$ and principal $P$ According to the question, (Amount after 4 years): (Amount after 6 years) = 11880 : 17820 = 2 : 3 ⇒ [$(1+\frac{R}{100})^{4}$]: [$(1+\frac{R}{100})^{6}$] = 2 : 3 ⇒ $(1+\frac{R}{100})^{2}$ = $\frac{3}{2}$ Amount after 4 years = $P(1+\frac{R}{100})^{4}$ ⇒ 11880 = $P(\frac{3}{2})^{2}$ ⇒ P = $\frac{11880 × 4}{9}$ = 5280 ⇒ $\frac{P}{2}$ = $\frac{5280}{2}$ = 2640 Hence, the correct answer is 2,640.
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Question : A sum of money invested at 20% compound interest (compounded annually). It would fetch Rs. 723 more in 2 years if interest is compounded half-yearly. The sum is:
Option 1: Rs. 15,000
Option 2: Rs. 30,000
Option 3: Rs. 20,000
Option 4: Rs. 7,500
Question : Rahul invested equal sums of money at compound interest under two schemes A and B. Under scheme A, the interest rate was 10% per annum, and under scheme B, the interest rate was 12% pa. The compound interest after two years on the sum invested in scheme A was INR 1,050. How much is the interest earned under scheme B after two years, if the interest is compounded annually in both schemes?
Option 1: INR 1,722
Option 2: INR 1,270
Option 3: INR 1,272
Option 4: INR 1,372
Question : What is the compound interest on a sum of INR 25,000 after three years at a rate of 12 percent per annum interest compounded yearly?
Option 1: INR 10,123.20
Option 2: INR 9,824.00
Option 3: INR 10,520.00
Option 4: INR 9,956.86
Question : The compound interest on a sum of INR 20,000 at 15% p.a. for $2 \frac{2}{3}$ years, interest compounded yearly, is:
Option 1: INR 9,098
Option 2: INR 8,896
Option 3: INR 9,000
Option 4: INR 9,095
Question : The compound interest (compounding annually) on a certain sum at the rate of 8% per annum for two years is INR 6,656. What would be the simple interest on the same sum at the same rate of interest for two years?
Option 1: INR 5,600
Option 2: INR 6,224
Option 3: INR 6,400
Option 4: INR 6,336
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