A sum of money at compound interest doubles in 4 years. In how many years will it become 8 times? MCQ with Answer and Explanation

A sum of money at compound interest doubles in 4 years. In how many years will it become 8 times?

A. 20 years

B. 12 years

C. 16 years

D. 10 years

Answer: Option B

2 times in 4 years, 8 = 2³ ⇒ 4 × 3 = 12 years.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

At what rate percent per annum will Rs. 32000 amount to Rs. 37232 in 3 years, compound interest compounded annually?

A. 4%

B. 5%

C. 6%

D. 8%

Correct Answer: Option B

Explanation:
Amount/Principal = 37232 / 32000 = 4654 / 4000 = 9261 / 8000 = (21 / 20)^3. Therefore, 1 + R/100 = 21/20 => R/100 = 1/20 => R = 5%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

Find the amount of Rs. 5000 at compound interest for 3 years at 4% per annum.

A. Rs. 5648

B. Rs. 5600

C. Rs. 5660

D. Rs. 5624.32

Correct Answer: Option D

Explanation:
A = 5000 × (1.04)³ = 5000 × 1.124864 = 5624.32.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The effective annual rate for 5% per annum compounded quarterly is:

A. 5.10%

B. 5.15%

C. 5.12%

D. 5.09%

Correct Answer: Option D

Explanation:
Quarterly rate 1.25%, (1.0125)⁴ = 1.050945, effective = 5.0945% ≈ 5.09%.

This question belongs to: Maths Compound Interest