A sum of money placed at compound interest doubles itself in 4 years. In how many years will it amount to 8 times itself? MCQ with Answer and Explanation
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Question #1
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The effective rate of interest for 10% per annum compounded half-yearly is:
Correct Answer: Option C
Explanation:
Effective rate = (1.05)² − 1 = 1.1025 − 1 = 0.1025 = 10.25%.
Effective rate = (1.05)² − 1 = 1.1025 − 1 = 0.1025 = 10.25%.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money at compound interest becomes 3 times in 4 years. In how many years will it become 9 times?
Correct Answer: Option A
Explanation:
3 times in 4 years, 9=3² ⇒ 4×2=8 years.
3 times in 4 years, 9=3² ⇒ 4×2=8 years.
This question belongs to:
Maths
Compound Interest
Question #3
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The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs. 930. Find the sum.
Correct Answer: Option A
Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 930 = P * (10/100)^2 * (3 + 10/100) => 930 = P * (1/100) * (3.1) => 930 = P * 0.031 => P = 930 / 0.031 = Rs. 30000.
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 930 = P * (10/100)^2 * (3 + 10/100) => 930 = P * (1/100) * (3.1) => 930 = P * 0.031 => P = 930 / 0.031 = Rs. 30000.
This question belongs to:
Maths
Compound Interest
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