Advertisements
Advertisements
Question
The number of conversion periods in a year, if the interest on a principal is compounded every two months is ___________
Options
2
4
6
12
Advertisements
Solution
6
Explanation;
Hint:
Conversion period is the time period after which the interest is added to the principal.
If principal is compounded every two months then in a year, there will be `6(12/5)` conversion periods.
APPEARS IN
RELATED QUESTIONS
Calculate the amount and compound interest on Rs 10800 for 3 years at `12 1/2` % per annum compounded annually.
Calculate the amount and compound interest on Rs 10000 for 1 year at 8% per annum compounded half yearly.
Geeta borrowed Rs. 15,000 for 18 months at a certain rate of interest compounded semi-annually. If at the end of six months it amounted to Rs. 15,600; calculate :
(i) the rate of interest per annum.
(ii) the total amount of money that Geeta must pay at the end of 18 months in order to clear the account.
Ashok borrowed Rs. 12,000 at some rate on compound interest. After a year, he paid back Rs.4,000. If the compound interest for the second year is Rs. 920, find:
- The rate of interest charged
- The amount of debt at the end of the second year
A man borrowed Rs. 20,000 for 2 years at 8% per year compound interest. Calculate :
(i) the interest of the first year.
(ii) the interest of the second year.
(iii) the final amount at the end of the second year.
(iv) the compound interest of two years.
Mohan borrowed Rs. 16,000 for 3 years at 5% per annum compound interest. Calculate the amount that Mohan will pay at the end of 3 years.
Calculate the difference between the compound interest and the simple interest on ₹ 8,000 in three years and at 10% per annum.
The compound interest on ₹ 5000 at 12% p.a for 2 years, compounded annually is ___________
In how many years will ₹ 3375 become ₹ 4096 at `13 1/3` p.a if the interest is compounded half-yearly?
Find the rate of compound interest at which a principal becomes 1.69 times itself in 2 years
