A sum of money at compound interest amounts to Rs. 2420 in 2 years and to Rs. 2662 in 3 years. Find the rate of interest. MCQ with Answer and Explanation

A sum of money at compound interest amounts to Rs. 2420 in 2 years and to Rs. 2662 in 3 years. Find the rate of interest.

A. 10%

B. 8%

C. 15%

D. 12%

Answer: Option A

Amount in 3 years / Amount in 2 years = 2662/2420 = 1.1 = 1 + R/100 ⇒ R = 10%.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

At what rate percent per annum will Rs. 8000 amount to Rs. 8820 in 2 years, compound interest compounded annually?

A. 5%

B. 4%

C. 6%

D. 8%

Correct Answer: Option A

Explanation:
Amount/Principal = 8820 / 8000 = 882 / 800 = 441 / 400 = (21 / 20)^2. Therefore, 1 + R/100 = 21/20 => R/100 = 1/20 => R = 5%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The difference between CI and SI on Rs. 1400 for 2 years at 10% is:

A. Rs. 15

B. Rs. 12

C. Rs. 13

D. Rs. 14

Correct Answer: Option D

Explanation:
D = 1400 × 0.01 = Rs. 14.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A certain sum amounts to Rs. 2205 in 2 years at 5% compound interest. The sum is:

A. Rs. 1900

B. Rs. 2100

C. Rs. 2000

D. Rs. 2150

Correct Answer: Option C

Explanation:
P = 2205 / (1.05)² = 2205 / 1.1025 = 2000.

This question belongs to: Maths Compound Interest