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
In how much time would Rs 5000 amount to Rs 6655 at 10% per annum compound interest?
In how many years ₹ 700 will amount to ₹ 847 at a compound interest rate of 10 p.c.p.a.
Mohit invests Rs. 8,000 for 3 years at a certain rate of interest, compounded annually. At the end of one year it amounts to Rs. 9,440. Calculate:
- the rate of interest per annum.
- the amount at the end of the second year.
- the interest accrued in the third year.
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.
Find the sum on which the difference between the simple interest and compound interest at the rate of 8% per annum compounded annually would be Rs. 64 in 2 years.
Saurabh invests Rs. 48,000 for 7 years at 10% per annum compound interest. Calculate:
(i) the interest for the first year.
(ii) the amount at the end of second year.
(iii) the interest for the third year.
Calculate the amount and the compound interest on Rs. 12,000 in 2 years and at 10% per year.
Mr. Sharma lends ₹24,000 at 13% p.a. simple interest and an equal sum at 12% p.a. compound interest. Find the total interest earned by Mr. Sharma in 2 years.
Peter borrows ₹ 12,000 for 2 years at 10% p.a. compound interest. He repays ₹ 8,000 at the end of the first year. Find:
- the amount at the end of the first year, before making the repayment.
- the amount at the end of the first year, after making the repayment.
- the principal for the second year.
- the amount to be paid at the end of the second year, to clear the account.
The cost of a machine is ₹ 18000 and it depreciates at `16 2/3 %` annually. Its value after 2 years will be ___________
