A sum of money at compound interest doubles in 5 years. In how many years will it become 4 times? MCQ with Answer and Explanation

A sum of money at compound interest doubles in 5 years. In how many years will it become 4 times?

A. 12 years

B. 10 years

C. 8 years

D. 15 years

Answer: Option B

2²=4, so 5×2=10 years.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The compound interest on a sum for 2 years at 11% is Rs. 464.20. The sum is:

A. Rs. 2000

B. Rs. 1800

C. Rs. 1900

D. Rs. 2100

Correct Answer: Option A

Explanation:
CI = P[(1.11)² − 1] = P × 0.2321 = 464.20 ⇒ P = 2000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The compound interest on Rs. 10000 for 1 year at 4% per annum compounded half-yearly is:

A. Rs. 400

B. Rs. 404

C. Rs. 408

D. Rs. 412

Correct Answer: Option B

Explanation:
Half-yearly rate = 2%, n=2. A = 10000 × (1.02)² = 10000 × 1.0404 = 10404, CI = 10404 − 10000 = Rs. 404.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The difference between compound interest and simple interest on a sum for 2 years at 8% is Rs. 32. The sum is:

A. Rs. 4000

B. Rs. 5500

C. Rs. 5000

D. Rs. 4500

Correct Answer: Option C

Explanation:
D = P × (0.08)² = P × 0.0064 = 32 ⇒ P = 5000.

This question belongs to: Maths Compound Interest