1.

What would be the compound interest accrued on an amount of 4500 Rs. at the end of 2 years at the rate of 10 % per annum?

**Answer: Option 'A'**

**Given principal = 4500
No. of years = 2
Rate of interest = 10
**

2.

What would be the compound interest accrued on an amount of 4500 Rs. at the end of 2 years at the rate of 10 % per annum ?

**Answer: Option 'B'**

**Given principal = 4500
No. of years = 2
Rate of interest = 10
Amount = P x (1+r/100)**

3.

The difference between the compound interest and simple interest on a certain sum of money at 5% per annum for 2 years is 45. Then the original sum is?

**Answer: Option 'C'**

**For 2 years = (100 ^{2}D)/R^{2}**

= (100^{2} × 45)/(5 × 5) = (10000 × 45)/25 = Rs.18000/-

4.

A person receives a sum of Rs. 210 as interest for investing some amount at 10% p.a compounding annually for 2 years. Find the amount invested at the beginning

**Answer: Option 'B'**

**Given**

Compound interest received by the person ( C.I ) = Rs. 210

Rate of interest ( r ) = 10 %

Number of years ( n ) = 2 years

To find, Amount invested at the beginning = principal ( p )

**Compound interest ( C.I ) = Amount - Principal
Amount = p ( 1 + r / 100 ) ^{n}**

=> C.I = p [ ( 1 + r / 100 )

=> 210 = p [ ( 1 + 10 / 100 )

=> 210 = p [ ( 110 / 100 )

=> 210 = p [ ( 11 / 10 )

=> 210 = p [ ( 121 / 100 ) - 1 ]

=> 210 = p [ ( 121 - 100 ) / 100 ]

=> 210 = p [ 21 / 100 ]

=> 210 x ( 100 / 21 ) = p

=>

5.

A sum of money is borrowed and paid back in two annual instalments of Rs.882 each allowing 5% compound interest .The sum borrowed was:

**Answer: Option 'B'**

**Given
The sum borrowed
Present Worth of Rs.882 due 1 year + Present Worth of Rs.882 due 2 year
=> ( 882 ) / 1 + ( 5 / 100)**

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