A sum of money at compound interest quadruples in 2 years. In how many years will it become 16 times? MCQ with Answer and Explanation
Question
Report Error
Discuss this Question (0)
Practice More Compound Interest Questions
Question #1
Report Error
If the compound interest on a certain sum for 2 years at 12% per annum is Rs. 1590, find the simple interest on the same sum at the same rate for the same period.
Correct Answer: Option D
Explanation:
Effective compound interest rate = 12 + 12 + (1212)/100 = 25.44%. Simple interest rate = 12 * 2 = 24%. Given 25.44% of sum = 1590 => Sum = 1590 / 0.2544 = Rs. 6250. Simple Interest = 24% of 6250 = Rs. 1500.
Effective compound interest rate = 12 + 12 + (1212)/100 = 25.44%. Simple interest rate = 12 * 2 = 24%. Given 25.44% of sum = 1590 => Sum = 1590 / 0.2544 = Rs. 6250. Simple Interest = 24% of 6250 = Rs. 1500.
This question belongs to:
Maths
Compound Interest
Question #2
Report Error
A sum of money doubles itself at compound interest in 8 years. In how many years will it become 16 times?
Correct Answer: Option D
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
Report Error
If the simple interest on a sum for 2 years at 8% is Rs. 400, the compound interest on the same sum for 2 years at 8% is:
Correct Answer: Option A
Explanation:
P = SI × 100 / (8×2) = 40000/16 = 2500. CI = 2500[(1.08)² − 1] = 2500 × 0.1664 = Rs. 416.
P = SI × 100 / (8×2) = 40000/16 = 2500. CI = 2500[(1.08)² − 1] = 2500 × 0.1664 = Rs. 416.
This question belongs to:
Maths
Compound Interest
No comments yet. Be the first to start the discussion!