A sum of money invested at compound interest doubles itself in 7 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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The compound interest on a certain sum for 2 years at 10% per annum is Rs. 1260. Find the principal sum.
Correct Answer: Option B
Explanation:
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Given 21% of P = 1260 => P = 1260 / 0.21 = Rs. 6000.
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Given 21% of P = 1260 => P = 1260 / 0.21 = Rs. 6000.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money at compound interest becomes 2.25 times in 2 years. The rate of interest is:
Correct Answer: Option D
Explanation:
(1+r)² = 2.25 ⇒ 1+r = 1.5 ⇒ r = 50%.
(1+r)² = 2.25 ⇒ 1+r = 1.5 ⇒ r = 50%.
This question belongs to:
Maths
Compound Interest
Question #3
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What sum will amount to Rs. 9261 in 2 years at 5% per annum compound interest?
Correct Answer: Option A
Explanation:
P = 9261 / 1.1025 = 8400.
P = 9261 / 1.1025 = 8400.
This question belongs to:
Maths
Compound Interest
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