Ali invests Rs. 20,000 at the rate of 5% compounding yearly. After one year, he will have _____?
Answer: Rs. 21000
Explanation
Let's calculate the amount Ali will have after one year with compound interest:
Principal (P) = Rs. 20,000
Rate (R) = 5% = 0.05
Time (n) = 1 year
Amount = P × (1 + R)^n
= 20,000 × (1 + 0.05)^1
= 20,000 × 1.05
= 21,000
This question appeared in
Past Papers (6 times)
IBA STS 25 Years Past Papers Subject Wise (Solved) (2 times)
IBA STS Past Papers, Syllabus, Jobs (2 times)
IBA STS Screening Test Bps 05 to 15 Past Papers and Syllabus (2 times)
This question appeared in
Subjects (1 times)
MATHS MCQS (1 times)
Related MCQs
- A man has Rs. 10,000 to invest. He invests Rs. 4000 at 5% and Rs. 3500 at 4%. In order to have a yearly income of Rs. 500, he must invest the remaining Rs. 2500 at what rate of interest?
- If principle = Rs 1,00,000, rate of interest = 10% compounded half yearly. find the amount after one year.
- On what Principal, compound interest compounded half-yearly is Rs. 1050 at the rate of 20% per annum for 1 year?
- The effective annual rate of interest, corresponding to a nominal rate of 6% per annum payable half yearly, is?
- What is the term for the interest rate stated on an annual basis without compounding?
- A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:
- Village X has a population of 68000, which is decreasing at the rate of 1200 per year, Village Y has a population of 42000, which is increasing at the rate of 800 per year. In how many years will the population of the two villages be equal?
- In World Economic Outlook (WEO) 2022, the IMF projected an _____ average rate of inflation for the current year against 8.9pc in 2021.
- Ali deposits an amount of X 65800 to obtain a simple interest at the rate of 14% per annum for 4 year. What total amount will Ali get at the end of 4 year?
- What will be the compound interest on a sum of Rs. 1875 after 2 years if the rate of interest for the first year is 4% and that for the second year is 8%?
