A sum of money invested at compound interest doubles itself in 14 years. In how many years will it become 4 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. 6000 amount to Rs. 7260 in 2 years?
Correct Answer: Option B
Explanation:
6000(1+r)² = 7260 ⇒ (1+r)² = 1.21 ⇒ r = 10%.
6000(1+r)² = 7260 ⇒ (1+r)² = 1.21 ⇒ r = 10%.
This question belongs to:
Maths
Compound Interest
Question #2
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The compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 410. What would be the simple interest on the same sum at the same rate for the same time?
Correct Answer: Option A
Explanation:
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 410 => 1% of sum = 40. Simple Interest = 10% of sum = 10 * 40 = Rs. 400.
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 410 => 1% of sum = 40. Simple Interest = 10% of sum = 10 * 40 = Rs. 400.
This question belongs to:
Maths
Compound Interest
Question #3
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The simple interest on a sum for 2 years at 6% is Rs. 480. The compound interest on the same sum for 2 years at 6% is:
Correct Answer: Option A
Explanation:
P = 48000/(6×2) = 4000. CI = 4000[(1.06)² − 1] = 4000 × 0.1236 = Rs. 494.40.
P = 48000/(6×2) = 4000. CI = 4000[(1.06)² − 1] = 4000 × 0.1236 = Rs. 494.40.
This question belongs to:
Maths
Compound Interest
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