A sum of Rs. 12000 deposited at compound interest becomes double after 5 years. After 20 years, it will become: MCQ with Answer and Explanation

A sum of Rs. 12000 deposited at compound interest becomes double after 5 years. After 20 years, it will become:

A. Rs. 192000

B. Rs. 182000

C. Rs. 96000

D. Rs. 120000

Answer: Option A

In 20 years, there are 20 / 5 = 4 intervals of 5 years. Expansion factor = 2^4 = 16. Total amount = 12000 * 16 = Rs. 192000.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The compound interest on Rs. 500 for 2 years at 4% per annum is:

A. Rs. 40.80

B. Rs. 42.40

C. Rs. 40.00

D. Rs. 41.60

Correct Answer: Option A

Explanation:
A = 500 × (1.04)² = 500 × 1.0816 = 540.80, CI = 540.80 − 500 = Rs. 40.80.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The effective annual rate for 15% per annum compounded half-yearly is:

A. 15.25%

B. 15.50%

C. 15.56%

D. 15.75%

Correct Answer: Option C

Explanation:
Half-yearly rate 7.5%, (1.075)² = 1.155625, effective = 15.5625% ≈ 15.56%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money amounts to Rs. 11025 in 2 years and Rs. 11576.25 in 3 years at compound interest. Find the sum.

A. Rs. 10000

B. Rs. 10500

C. Rs. 9000

D. Rs. 9500

Correct Answer: Option A

Explanation:
Rate = (11576.25/11025 − 1) × 100 = 5%. P = 11025 / (1.05)² = 11025 / 1.1025 = 10000.

This question belongs to: Maths Compound Interest