model 1 basic compound interest using formula Section-Wise Topic Notes With Detailed Explanation And Example Questions

Question : 1

If the rate of interest be 4% per annum for first year, 5% per annum for second year and 6% per annum for third year, then the compound interest of Rs.10,000 for 3 years will be

a) Rs.2,000

b) Rs.1,600

c) Rs.1,575.20

d) Rs.1,625.80

Question : 2

In how many years will a sum of Rs.800 at 10% per annum compound interest, compounded semi-annually becomes Rs.926.10 ?

a) 2$1/2$ years

b) 1$1/2$ years

c) 2$1/3$ years

d) 1$2/3$ years

Question : 3

At what rate per cent per annum will a sum of Rs.1,000 amounts to Rs.1,102.50 in 2 years at compound interest ?

a) 6.5%

b) 5%

c) 6%

d) 5.5%