A sum of money at compound interest becomes 6 times in 4 years. In how many years will it become 216 times? MCQ with Answer and Explanation

A sum of money at compound interest becomes 6 times in 4 years. In how many years will it become 216 times?

A. 10 years

B. 12 years

C. 8 years

D. 16 years

Answer: Option B

216 = 6³, so 4 × 3 = 12 years.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

What sum will amount to Rs. 1210 in 2 years at 10% per annum compound interest?

A. Rs. 1200

B. Rs. 1000

C. Rs. 1100

D. Rs. 900

Correct Answer: Option B

Explanation:
P = 1210 / (1.1)² = 1210 / 1.21 = 1000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The effective rate of interest for 5% per annum compounded half-yearly is:

A. 5.05%

B. 5.0625%

C. 5.10%

D. 5.12%

Correct Answer: Option B

Explanation:
Effective rate = (1.025)² − 1 = 1.050625 − 1 = 5.0625%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

What sum will amount to Rs. 1331 in 3 years at 10% compound interest?

A. Rs. 900

B. Rs. 1100

C. Rs. 1200

D. Rs. 1000

Correct Answer: Option D

Explanation:
P = 1331 / 1.331 = 1000.

This question belongs to: Maths Compound Interest