A sum of money at compound interest doubles in 10 years. In how many years will it become 32 times? MCQ with Answer and Explanation
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Question #1
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Find the compound interest on Rs. 8500 at 8% per annum for 2 years.
Correct Answer: Option B
Explanation:
A = 8500 × (1.08)² = 8500 × 1.1664 = 9914.40, CI = 9914.40 − 8500 = Rs. 1414.40.
A = 8500 × (1.08)² = 8500 × 1.1664 = 9914.40, CI = 9914.40 − 8500 = Rs. 1414.40.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money doubles itself at compound interest in 8 years. In how many years will it become 16 times?
Correct Answer: Option A
Explanation:
2 times in 8 years, 16 = 2⁴, so 8 × 4 = 32 years.
2 times in 8 years, 16 = 2⁴, so 8 × 4 = 32 years.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 1025. What would be the simple interest on the same sum at the same rate for the same time?
Correct Answer: Option C
Explanation:
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 1025 => 1% of sum = 100. Simple Interest = 10% of sum = 10 * 100 = Rs. 1000.
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 1025 => 1% of sum = 100. Simple Interest = 10% of sum = 10 * 100 = Rs. 1000.
This question belongs to:
Maths
Compound Interest
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