A sum of money doubles itself in 8 years at compound interest. In how many years will it become four times of itself? MCQ with Answer and Explanation
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Question #1
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At what rate percent compound interest will Rs. 3200 amount to Rs. 3872 in 2 years?
Correct Answer: Option A
Explanation:
3200(1+r)² = 3872 ⇒ (1+r)² = 1.21 ⇒ r = 10%.
3200(1+r)² = 3872 ⇒ (1+r)² = 1.21 ⇒ r = 10%.
This question belongs to:
Maths
Compound Interest
Question #2
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The difference between simple interest and compound interest on a certain sum of money for 2 years at 4% per annum is Rs. 16. Find the sum.
Correct Answer: Option D
Explanation:
Difference for 2 years = P * (R/100)^2 => 16 = P * (4/100)^2 => 16 = P * (16 / 10000) => P = Rs. 10000.
Difference for 2 years = P * (R/100)^2 => 16 = P * (4/100)^2 => 16 = P * (16 / 10000) => P = Rs. 10000.
This question belongs to:
Maths
Compound Interest
Question #3
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If the simple interest on a sum of money for 3 years at 5% per annum is Rs. 1200, find the compound interest on the same sum at the same rate for the same period.
Correct Answer: Option C
Explanation:
Simple Interest for 1 year = 1200 / 3 = Rs. 400. Principal P = (1200 * 100) / (5 * 3) = Rs. 8000. Amount with compound interest = 8000 * (1 + 5/100)^3 = 8000 * 1.157625 = Rs. 9261. Compound Interest = 9261 - 8000 = Rs. 1261.
Simple Interest for 1 year = 1200 / 3 = Rs. 400. Principal P = (1200 * 100) / (5 * 3) = Rs. 8000. Amount with compound interest = 8000 * (1 + 5/100)^3 = 8000 * 1.157625 = Rs. 9261. Compound Interest = 9261 - 8000 = Rs. 1261.
This question belongs to:
Maths
Compound Interest
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