A sum of money at compound interest doubles in 5 years. In how many years will it become 16 times? MCQ with Answer and Explanation
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Question #1
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At what rate percent compound interest will Rs. 5000 amount to Rs. 6050 in 2 years?
Correct Answer: Option C
Explanation:
5000(1+r)² = 6050 ⇒ (1+r)² = 1.21 ⇒ r = 10%.
5000(1+r)² = 6050 ⇒ (1+r)² = 1.21 ⇒ r = 10%.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money amounts to Rs. 4840 in 2 years and Rs. 5324 in 3 years at compound interest. Find the rate.
Correct Answer: Option D
Explanation:
Rate = (5324/4840 − 1) × 100 = (1.1 − 1) × 100 = 10%.
Rate = (5324/4840 − 1) × 100 = (1.1 − 1) × 100 = 10%.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on a certain sum for 2 years at 5% per annum is Rs. 820. Find the principal sum.
Correct Answer: Option D
Explanation:
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Given 10.25% of P = 820 => P = 820 / 0.1025 = Rs. 8000.
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Given 10.25% of P = 820 => P = 820 / 0.1025 = Rs. 8000.
This question belongs to:
Maths
Compound Interest
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