Question : The compound interest received on INR 18,000 for 2 years is INR 7,920 when the interest is compounded annually. What is the rate of interest per annum?
Option 1: 15%
Option 2: 12.5%
Option 3: 20%
Option 4: 25%
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Correct Answer: 20%
Solution : Given: Compound interest = INR 7920 Principal = INR 18,000 Time = 2 years Compound interest $= \text{Principal}×((1+\frac{\text{Rate}}{100})^{\text{Time}}-1)$ ⇒ $7920=18000×((1+\frac{\text{Rate}}{100})^{2}-1)$ ⇒ $\frac{7920}{18000}=((1+\frac{\text{Rate}}{100})^{2}-1)$ ⇒ $\frac{11}{25}+1=(1+\frac{\text{Rate}}{100})^{2}$ ⇒ $\frac{36}{25}=(1+\frac{\text{Rate}}{100})^{2}$ ⇒ $\frac{6}{5}=1+\frac{\text{Rate}}{100}$ ⇒ $\frac{6}{5}-1=\frac{\text{Rate}}{100}$ ⇒ $\frac{1}{5}=\frac{\text{Rate}}{100}$ $\therefore$ Rate $= 20$% Hence, the correct answer is 20%.
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Question : The difference between the compound interest and the simple interest on an amount of INR 1,500 for 2 years, at a given rate of interest per annum, is INR 60. What is the rate of interest per annum, if in the case of compound interest, the interest is compounded annually?
Option 1: 20%
Option 2: 15%
Option 3: 25%
Option 4: 12.5%
Question : The interest accrued on INR 12,000 in two years, when interest is compounded annually, is INR 3,870. What is the rate of interest per annum?
Option 1: 12.5%
Option 2: 10%
Option 4: 15%
Question : On a certain sum of money, the simple interest for 2 years is INR 150 at the rate of 10% per annum. What is the difference between compound interest and simple interest for 2 years if, in the case of compound interest, interest is compounded annually at the rate of 10% per annum?
Option 1: INR 5
Option 2: INR 10
Option 3: INR 7.5
Option 4: INR 12.5
Question : Raja borrowed INR 15,000 on simple interest at the rate of 13% per annum and lent it on compound interest at the rate of 15% per annum, compounded annually. What is Raja's gain in two years?
Option 1: INR 1,080.00
Option 2: INR 1,125.00
Option 3: INR 937.50
Option 4: INR 865.50
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
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