A sum of money at compound interest amounts to Rs. 6500 in 1 year and to Rs. 6760 in 2 years. Find the sum. MCQ with Answer and Explanation

A sum of money at compound interest amounts to Rs. 6500 in 1 year and to Rs. 6760 in 2 years. Find the sum.

A. Rs. 6000

B. Rs. 6300

C. Rs. 6250

D. Rs. 6400

Answer: Option C

Rate of interest = ((6760 - 6500) / 6500) * 100 = (260 / 6500) * 100 = 4%. Principal P = 6500 / (1 + 4/100) = 6500 / 1.04 = Rs. 6250.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

A sum of money placed at compound interest becomes double of itself in 10 years. In how many years will it become 8 times of itself?

A. 50 years

B. 40 years

C. 30 years

D. 20 years

Correct Answer: Option C

Explanation:
The sum becomes 2^1 times in 10 years. It will become 8 (2^3) times in 3 * 10 = 30 years.

This question belongs to: Maths Compound Interest

Question #2 Report Error

At what rate percent compound interest will a sum of Rs. 2000 become Rs. 2880 in 2 years?

A. 15%

B. 20%

C. 18%

D. 25%

Correct Answer: Option B

Explanation:
2000(1+r)² = 2880 ⇒ (1+r)² = 1.44 = (1.2)² ⇒ r = 20%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The difference between CI and SI for 3 years on Rs. 5000 at 10% is:

A. Rs. 155

B. Rs. 160

C. Rs. 150

D. Rs. 165

Correct Answer: Option A

Explanation:
D = 5000 × (0.1)² × (3 + 0.1) = 5000 × 0.01 × 3.1 = Rs. 155.

This question belongs to: Maths Compound Interest