At what rate percent compound interest will a sum of money become 9 times in 2 years? MCQ with Answer and Explanation
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Question #1
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A sum of money becomes 4 times in 2 years at compound interest. The rate of interest per annum is:
Correct Answer: Option A
Explanation:
P(1 + r)² = 4P ⇒ (1+r)² = 4 ⇒ 1+r = 2 ⇒ r = 1 = 100%.
P(1 + r)² = 4P ⇒ (1+r)² = 4 ⇒ 1+r = 2 ⇒ r = 1 = 100%.
This question belongs to:
Maths
Compound Interest
Question #2
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The simple interest on a certain sum for 2 years at 5% is Rs. 200. The compound interest on the same sum for the same period and rate is:
Correct Answer: Option D
Explanation:
SI = P × 5 × 2/100 = 0.1P = 200 ⇒ P = 2000. CI = P[(1.05)² − 1] = 2000 × 0.1025 = Rs. 205.
SI = P × 5 × 2/100 = 0.1P = 200 ⇒ P = 2000. CI = P[(1.05)² − 1] = 2000 × 0.1025 = Rs. 205.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on Rs. 12500 at 8% per annum for 1 year compounded half-yearly is:
Correct Answer: Option C
Explanation:
Half-yearly rate = 4%, n=2. A = 12500 × (1.04)² = 12500 × 1.0816 = 13520, CI = 13520 − 12500 = Rs. 1020.
Half-yearly rate = 4%, n=2. A = 12500 × (1.04)² = 12500 × 1.0816 = 13520, CI = 13520 − 12500 = Rs. 1020.
This question belongs to:
Maths
Compound Interest
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