A sum of money doubles itself at compound interest in 8 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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The compound interest on a certain sum for 2 years at 10% per annum is Rs. 420. What would be the simple interest on the same sum at the same rate for the same time?
Correct Answer: Option D
Explanation:
For 2 years at 10%, effective compound interest rate is 10 + 10 + (1010)/100 = 21%. Effective simple interest rate is 10 * 2 = 20%. Given 21% of sum = 420, then 1% of sum = 20. Simple Interest = 20% of sum = 20 * 20 = Rs. 400.
For 2 years at 10%, effective compound interest rate is 10 + 10 + (1010)/100 = 21%. Effective simple interest rate is 10 * 2 = 20%. Given 21% of sum = 420, then 1% of sum = 20. Simple Interest = 20% of sum = 20 * 20 = Rs. 400.
This question belongs to:
Maths
Compound Interest
Question #2
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At what rate of compound interest per annum will a sum of Rs. 800 become Rs. 882 in 2 years?
Correct Answer: Option A
Explanation:
800 × (1 + r)² = 882 ⇒ (1+r)² = 1.1025 ⇒ 1+r = 1.05 ⇒ r = 5%.
800 × (1 + r)² = 882 ⇒ (1+r)² = 1.1025 ⇒ 1+r = 1.05 ⇒ r = 5%.
This question belongs to:
Maths
Compound Interest
Question #3
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The difference between CI and SI on a sum for 2 years at 10% is Rs. 150. The sum is:
Correct Answer: Option B
Explanation:
D = P × 0.01 = 150 ⇒ P = 15000.
D = P × 0.01 = 150 ⇒ P = 15000.
This question belongs to:
Maths
Compound Interest
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