A sum of money invested at compound interest doubles itself in 4 years. In how many years will it become 16 times itself? MCQ with Answer and Explanation

A sum of money invested at compound interest doubles itself in 4 years. In how many years will it become 16 times itself?

A. 12 years

B. 20 years

C. 24 years

D. 16 years

Answer: Option D

The sum doubles (2^1) in 4 years. It will become 16 (2^4) times in 4 * 4 = 16 years.

This question belongs to: Maths Compound Interest

No comments yet. Be the first to start the discussion!

Question #1 Report Error

A sum of money placed at compound interest amounts to Rs. 1200 in 2 years and Rs. 1320 in 3 years. Find the rate of interest per annum.

A. 12%

B. 10%

C. 8%

D. 15%

Correct Answer: Option B

Explanation:
Interest earned in the 3rd year = 1320 - 1200 = Rs. 120. Rate of interest = (120 / 1200) * 100 = 10%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

Find the amount on Rs. 1800 at 10% per annum compound interest for 2 years.

A. Rs. 2200

B. Rs. 2160

C. Rs. 2178

D. Rs. 2196

Correct Answer: Option C

Explanation:
A = 1800 × (1.1)² = 1800 × 1.21 = 2178.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The simple interest on a sum for 2 years at 8% is Rs. 320. The compound interest on the same sum for 2 years at 8% is:

A. Rs. 345.60

B. Rs. 332.80

C. Rs. 371.20

D. Rs. 358.40

Correct Answer: Option B

Explanation:
P = 32000/(8×2) = 2000. CI = 2000 × 0.1664 = 332.80.

This question belongs to: Maths Compound Interest