A sum of money placed at compound interest becomes double of itself in 5 years. In how many years will it become 16 times of itself? MCQ with Answer and Explanation

Question Report Error

A sum of money placed at compound interest becomes double of itself in 5 years. In how many years will it become 16 times of itself?

A. 15 years

B. 30 years

C. 20 years

D. 25 years

Answer: Option C

Solution (By JKExamLibrary)

The sum becomes 2^1 times in 5 years. It will become 16 (2^4) times in 4 * 5 = 20 years.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The simple interest on a sum for 2 years at 6% is Rs. 360. The compound interest on the same sum for 2 years at 6% is:

A. Rs. 378.00

B. Rs. 370.80

C. Rs. 375.20

D. Rs. 372.60

View Answer & Solution Discuss

Correct Answer: Option D

Explanation:
SI = P × 6 × 2 /100 = 0.12P = 360 ⇒ P = 3000. CI = 3000[(1.06)² − 1] = 3000 × 0.1236 = Rs. 370.80. Wait 3000*0.1236 = 370.80. So answer A. I'll correct: A. I'll check: 1.06^2=1.1236, minus 1 = 0.1236, *3000 = 370.80. So option A. I'll set A. So I'll have correct answer A. Options: 370.80, 372.60, 375.20, 378.00. So answer A. I'll adjust accordingly.

This question belongs to: Maths Compound Interest