A sum of money invested at compound interest doubles itself in 5 years. In how many years will it become 8 times of itself? MCQ with Answer and Explanation
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Question #1
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In how many years will Rs. 1200 amount to Rs. 1323 at 5% per annum compound interest?
Correct Answer: Option D
Explanation:
1200(1.05)^t = 1323 ⇒ (1.05)^t = 1.1025 = (1.05)² ⇒ t = 2.
1200(1.05)^t = 1323 ⇒ (1.05)^t = 1.1025 = (1.05)² ⇒ t = 2.
This question belongs to:
Maths
Compound Interest
Question #2
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What is the compound interest on Rs. 20000 for 2 years if the rate of interest is 5% for the first year and 10% for the second year?
Correct Answer: Option D
Explanation:
Amount = 20000 * (1 + 5/100) * (1 + 10/100) = 20000 * 1.05 * 1.10 = 20000 * 1.155 = Rs. 22100. Compound Interest = 22100 - 20000 = Rs. 2100.
Amount = 20000 * (1 + 5/100) * (1 + 10/100) = 20000 * 1.05 * 1.10 = 20000 * 1.155 = Rs. 22100. Compound Interest = 22100 - 20000 = Rs. 2100.
This question belongs to:
Maths
Compound Interest
Question #3
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At what rate percent per annum will Rs. 1000 amount to Rs. 1331 in 3 years, compound interest compounded annually?
Correct Answer: Option A
Explanation:
Amount/Principal = 1331 / 1000 = (11 / 10)^3. Therefore, 1 + R/100 = 11/10 => R/100 = 1/10 => R = 10%.
Amount/Principal = 1331 / 1000 = (11 / 10)^3. Therefore, 1 + R/100 = 11/10 => R/100 = 1/10 => R = 10%.
This question belongs to:
Maths
Compound Interest
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