At compound interest, a sum becomes 1.21 times in 2 years. The rate of interest per annum is: MCQ with Answer and Explanation

At compound interest, a sum becomes 1.21 times in 2 years. The rate of interest per annum is:

A. 9%

B. 11%

C. 12%

D. 10%

Answer: Option D

(1 + r)² = 1.21 ⇒ 1 + r = 1.1 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The compound interest on Rs. 10000 for 1 year at 4% per annum compounded half-yearly is:

A. Rs. 408

B. Rs. 404

C. Rs. 412

D. Rs. 400

Correct Answer: Option B

Explanation:
Half-yearly rate = 2%, n=2. A = 10000 × (1.02)² = 10000 × 1.0404 = 10404, CI = 10404 − 10000 = Rs. 404.

This question belongs to: Maths Compound Interest

Question #2 Report Error

Find the amount on Rs. 1800 at 10% per annum compound interest for 2 years.

A. Rs. 2160

B. Rs. 2178

C. Rs. 2200

D. Rs. 2196

Correct Answer: Option B

Explanation:
A = 1800 × (1.1)² = 1800 × 1.21 = 2178.

This question belongs to: Maths Compound Interest

Question #3 Report Error

At what rate percent per annum will Rs. 40000 amount to Rs. 48400 in 2 years, compound interest compounded annually?

A. 10%

B. 14%

C. 8%

D. 12%

Correct Answer: Option A

Explanation:
Amount/Principal = 48400 / 40000 = 121 / 100 = (11 / 10)^2. Therefore, 1 + R/100 = 11/10 => R/100 = 1/10 => R = 10%.

This question belongs to: Maths Compound Interest