A sum of money placed at compound interest becomes double of itself in 2 years. In how many years will it become 16 times of itself? MCQ with Answer and Explanation

A sum of money placed at compound interest becomes double of itself in 2 years. In how many years will it become 16 times of itself?

A. 12 years

B. 10 years

C. 6 years

D. 8 years

Answer: Option D

The sum becomes 2^1 times in 2 years. It will become 16 (2^4) times in 4 * 2 = 8 years.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

A sum becomes Rs. 2315.25 in 2 years at 5% compound interest. Find the sum.

A. Rs. 2100

B. Rs. 2000

C. Rs. 2200

D. Rs. 2300

Correct Answer: Option A

Explanation:
P = 2315.25 / (1.05)² = 2315.25 / 1.1025 = 2100.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The compound interest on Rs. 900 at 10% per annum for 2 years is:

A. Rs. 180

B. Rs. 198

C. Rs. 207

D. Rs. 189

Correct Answer: Option D

Explanation:
A = 900 × (1.1)² = 900 × 1.21 = 1089, CI = 1089 − 900 = Rs. 189.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The simple interest on a sum for 2 years at 12% is Rs. 720. The compound interest on the same sum for 2 years at 12% is:

A. Rs. 763.20

B. Rs. 752.64

C. Rs. 760.00

D. Rs. 768.00

Correct Answer: Option A

Explanation:
P = 72000/(12×2) = 3000. CI = 3000[(1.12)² − 1] = 3000 × 0.2544 = 763.20.

This question belongs to: Maths Compound Interest