Compound interest is the interest calculated on the previous year’s amount.
True
False
The percentage of the principal paid over a certain period of time is called the amount.
True
False
If no conversion period is specified, it is taken to be 1 year.
True
False
When the interest is compounded half-yearly, the rate of interest doubles.
True
False
Depreciation is the relative decrease in asset value over a period of time.
True
False
Click the correct answer.
What is the amount on ₹ 1,000 for 2 years at the rate of 5% per annum compounded annually?
₹ 1,100.00
₹ 1,102.50
₹ 1,102.25
₹ 1,100.50
What is the compound interest on ₹ 20,000 for 2 years at the rate of 10% per annum?
₹ 4,000
₹ 4,050
₹ 4,200
₹ 4,310
If the interest is compounded half-yearly, then to find the amount what should be done to the given time?
It should be halved
It should be doubled
It should be tripled
It should remain unchanged
Which of the following is always true?
Compound interest $$=$$ Simple interest
Compound interest $$\geq$$ Simple interest
Compound interest $$>$$ Simple interest
Compound interest $$\leq$$ Simple interest
What is the difference between the compound interest and simple interest on ₹ 500 at the rate of 10% per annum for 1 year?
₹ 0
₹ 20
₹ 10
₹ 50
What is the compound interest on ₹ 1,200 for 2 years at 5% per annum?
₹ 123
₹ 103
₹ 132
₹ 135
What is the compound interest on ₹ 1,000 for 2 years at the rate of 10% per annum?
₹ 210
₹ 245
₹ 220
₹ 280
What is the compound interest on ₹ 50,000 for 2 years at the rate of 8% per annum compounded half-yearly?
₹ 8,492.93
₹ 7,403.90
₹ 8,592.95
₹ 7,412.98
What is the amount on ₹ 15,625 in 9 months at the rate of 16% per annum, when the interest is compounded quarterly?
₹ 17,576
₹ 17,420
₹ 16,776
₹ 17,897
Click the correct answer.
Compounding of interest allows a principal amount to grow at
rate than simple interest.
a faster
a slower
an average
The relative
in the value of any asset is called appreciation.
increase
decrease
equality
The value of an asset
over a period of time due to usage and wear and tear.
reduces
increases
remains the same
The appreciation per unit time is called the
.
rate of appreciation
rate of depreciation
unit of appreciation
If the interest is compounded quarterly, then to find the amount the given time becomes
times.
four
two
three
The borrowed amount is called the
.
principal
interest
rate
The depreciation per unit of time is called the
.
rate of depreciation
unit of depreciation
rate of appreciation
The fixed time interval at the end of which the interest is calculated and then added to the principal before the beginning of the next time interval is called the
.
