A sum of money at compound interest becomes 5 times in 3 years. In how many years will it become 25 times? MCQ with Answer and Explanation
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Practice More Compound Interest Questions
Question #1
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What sum will amount to Rs. 14520 in 2 years at 10% per annum compound interest?
Correct Answer: Option B
Explanation:
P = 14520 / (1.1)² = 14520 / 1.21 = 12000.
P = 14520 / (1.1)² = 14520 / 1.21 = 12000.
This question belongs to:
Maths
Compound Interest
Question #2
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The simple interest on a sum for 2 years at 6% is Rs. 360. The compound interest on the same sum for 2 years at 6% is:
Correct Answer: Option A
Explanation:
SI = P × 6 × 2 /100 = 0.12P = 360 ⇒ P = 3000. CI = 3000[(1.06)² − 1] = 3000 × 0.1236 = Rs. 370.80. Wait 3000*0.1236 = 370.80. So answer A. I'll correct: A. I'll check: 1.06^2=1.1236, minus 1 = 0.1236, *3000 = 370.80. So option A. I'll set A. So I'll have correct answer A. Options: 370.80, 372.60, 375.20, 378.00. So answer A. I'll adjust accordingly.
SI = P × 6 × 2 /100 = 0.12P = 360 ⇒ P = 3000. CI = 3000[(1.06)² − 1] = 3000 × 0.1236 = Rs. 370.80. Wait 3000*0.1236 = 370.80. So answer A. I'll correct: A. I'll check: 1.06^2=1.1236, minus 1 = 0.1236, *3000 = 370.80. So option A. I'll set A. So I'll have correct answer A. Options: 370.80, 372.60, 375.20, 378.00. So answer A. I'll adjust accordingly.
This question belongs to:
Maths
Compound Interest
Question #3
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At what rate percent per annum will Rs. 20000 amount to Rs. 23328 in 2 years, compound interest compounded annually?
Correct Answer: Option D
Explanation:
Amount/Principal = 23328 / 20000 = 11664 / 10000 = (108 / 100)^2. Therefore, 1 + R/100 = 1.08 => R = 8%.
Amount/Principal = 23328 / 20000 = 11664 / 10000 = (108 / 100)^2. Therefore, 1 + R/100 = 1.08 => R = 8%.
This question belongs to:
Maths
Compound Interest
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