Simple and Compound Interest Questions

Multiple choice
  1. $x >$ Rs. $3000$
  2. Rs. $3000 < x <$ Rs. $4000$
  3. Rs. $4000 < x < 5000$
  4. $x >$ Rs. $5000$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Principal = 24000, rate = 10% per annum, compounded semiannually means 5% per half-year. For 1.5 years (3 periods), the amount is 24000 * (1.05)^3 = 24000 * 1.157625 = 27783. The interest is 27783 - 24000 = 3783, which is between 3000 and 4000.

Multiple choice
  1. Rs $4360$
  2. Rs $4260$
  3. Rs $4335$
  4. Rs $4096$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The ratio of the amount after 3 years to the amount after 2 years is 4913/4624 = 1.0625. Since the amount grows by a factor of (1+r), the principal P satisfies P * (1.0625)^2 = 4624. Solving this gives P = 4624 / (1.0625)^2 = 4096.