At what rate of compound interest will Rs. 625 amount to Rs. 676 in 2 years? MCQ with Answer and Explanation

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At what rate of compound interest will Rs. 625 amount to Rs. 676 in 2 years?

A. 4%

B. 3%

C. 5%

D. 6%

Answer: Option A

Solution (By JKExamLibrary)

625(1 + r)² = 676 ⇒ (1+r)² = 1.0816 = (1.04)² ⇒ r = 4%.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

Find the compound interest on Rs. 500 at 10% per annum for 2 years.

A. Rs. 100

B. Rs. 115

C. Rs. 105

D. Rs. 110

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Correct Answer: Option C

Explanation:
A = 500 × 1.21 = 605, CI = 605 − 500 = Rs. 105.

This question belongs to: Maths Compound Interest

Question #2 Report Error

What sum will yield Rs. 410 as compound interest in 2 years at 5% per annum?

A. Rs. 3900

B. Rs. 4000

C. Rs. 4100

D. Rs. 3800

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Correct Answer: Option B

Explanation:
P = 410 / 0.1025 = 4000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money at compound interest becomes 2.25 times in 2 years. The rate of interest is:

A. 55%

B. 50%

C. 40%

D. 45%

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Correct Answer: Option B

Explanation:
(1+r)² = 2.25 ⇒ 1+r = 1.5 ⇒ r = 50%.

This question belongs to: Maths Compound Interest

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