A sum of money at compound interest amounts to Rs. 6655 in 3 years and to Rs. 7320.50 in 4 years. Find the rate of interest. MCQ with Answer and Explanation

A sum of money at compound interest amounts to Rs. 6655 in 3 years and to Rs. 7320.50 in 4 years. Find the rate of interest.

A. 10%

B. 11%

C. 8%

D. 9%

Answer: Option A

Rate = (7320.50/6655 − 1) × 100 = (1.1 − 1) × 100 = 10%.

This question belongs to: Maths Compound Interest

No comments yet. Be the first to start the discussion!

Question #1 Report Error

The compound interest on a sum for 2 years at 10% compounded half-yearly is Rs. 4310.12. The sum is:

A. Rs. 21000

B. Rs. 18000

C. Rs. 19000

D. Rs. 20000

Correct Answer: Option D

Explanation:
CI = P[(1.05)⁴ − 1] = P × 0.21550625 = 4310.125 ⇒ P = 4310.125 / 0.21550625 = 20000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money at compound interest becomes 3 times in 5 years. In how many years will it become 9 times?

A. 12 years

B. 15 years

C. 8 years

D. 10 years

Correct Answer: Option D

Explanation:
3 times in 5 years; 9 = 3² ⇒ 5 × 2 = 10 years.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on Rs. 3700 at 10% per annum for 2 years is:

A. Rs. 740

B. Rs. 777

C. Rs. 814

D. Rs. 851

Correct Answer: Option B

Explanation:
A = 3700 × 1.21 = 4477, CI = 4477 − 3700 = Rs. 777.

This question belongs to: Maths Compound Interest