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. MCQ with Answer and Explanation
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Question #1
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A sum of money invested at compound interest doubles itself in 6 years. In how many years will it become 4 times of itself?
Correct Answer: Option B
Explanation:
The sum doubles (2^1) in 6 years. It will become 4 (2^2) times in 2 * 6 = 12 years.
The sum doubles (2^1) in 6 years. It will become 4 (2^2) times in 2 * 6 = 12 years.
This question belongs to:
Maths
Compound Interest
Question #2
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The difference between CI and SI on a sum for 2 years at 12% is Rs. 72. The sum is:
Correct Answer: Option A
Explanation:
D = P × (0.12)² = P × 0.0144 = 72 ⇒ P = 5000.
D = P × (0.12)² = P × 0.0144 = 72 ⇒ P = 5000.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on a certain sum for 2 years at 10% per annum is Rs. 441. Find the principal sum.
Correct Answer: Option D
Explanation:
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Given 21% of P = 441 => P = 441 / 0.21 = Rs. 2100.
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Given 21% of P = 441 => P = 441 / 0.21 = Rs. 2100.
This question belongs to:
Maths
Compound Interest
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