A sum of money at compound interest becomes 4 times in 2 years. In how many years will it become 16 times? MCQ with Answer and Explanation
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Question #1
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A sum of money placed at compound interest becomes double of itself in 8 years. In how many years will it become 16 times of itself?
Correct Answer: Option B
Explanation:
The sum becomes 2^1 times in 8 years. It will become 16 (2^4) times in 4 * 8 = 32 years.
The sum becomes 2^1 times in 8 years. It will become 16 (2^4) times in 4 * 8 = 32 years.
This question belongs to:
Maths
Compound Interest
Question #2
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The difference between CI and SI on Rs. 9000 for 2 years at 6% is:
Correct Answer: Option C
Explanation:
D = 9000 × (0.06)² = 9000 × 0.0036 = Rs. 32.40.
D = 9000 × (0.06)² = 9000 × 0.0036 = Rs. 32.40.
This question belongs to:
Maths
Compound Interest
Question #3
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At what rate percent per annum will Rs. 5000 amount to Rs. 5832 in 2 years, compound interest compounded annually?
Correct Answer: Option A
Explanation:
Amount/Principal = 5832 / 5000 = 11664 / 10000. Taking square root: sqrt(11664/10000) = 108 / 100 = 1.08. Thus, 1 + R/100 = 1.08 => R = 8%.
Amount/Principal = 5832 / 5000 = 11664 / 10000. Taking square root: sqrt(11664/10000) = 108 / 100 = 1.08. Thus, 1 + R/100 = 1.08 => R = 8%.
This question belongs to:
Maths
Compound Interest
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