A sum of money at compound interest becomes 5 times in 4 years. In how many years will it become 25 times? MCQ with Answer and Explanation
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Question #1
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In how many years will Rs. 4000 amount to Rs. 4410 at 5% per annum compound interest?
Correct Answer: Option B
Explanation:
4000(1.05)^t = 4410 ⇒ (1.05)^t = 1.1025 ⇒ t = 2.
4000(1.05)^t = 4410 ⇒ (1.05)^t = 1.1025 ⇒ t = 2.
This question belongs to:
Maths
Compound Interest
Question #2
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At what rate percent per annum will Rs. 10000 amount to Rs. 11664 in 2 years, compound interest compounded annually?
Correct Answer: Option B
Explanation:
Amount/Principal = 11664 / 10000. Taking square root: sqrt(11664/10000) = 108 / 100 = 1.08. Therefore, 1 + R/100 = 1.08 => R = 8%.
Amount/Principal = 11664 / 10000. Taking square root: sqrt(11664/10000) = 108 / 100 = 1.08. Therefore, 1 + R/100 = 1.08 => R = 8%.
This question belongs to:
Maths
Compound Interest
Question #3
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What is the compound interest on Rs. 10000 for 1 year at 12% per annum, compounded half-yearly?
Correct Answer: Option D
Explanation:
Half-yearly rate = 12/2 = 6%. Time = 2 half-years. Amount = 10000 * (1 + 6/100)^2 = 10000 * 1.1236 = Rs. 11236. Compound Interest = 11236 - 10000 = Rs. 1236.
Half-yearly rate = 12/2 = 6%. Time = 2 half-years. Amount = 10000 * (1 + 6/100)^2 = 10000 * 1.1236 = Rs. 11236. Compound Interest = 11236 - 10000 = Rs. 1236.
This question belongs to:
Maths
Compound Interest
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