At what rate percent compound interest will a sum of Rs. 2000 become Rs. 2880 in 2 years? MCQ with Answer and Explanation

At what rate percent compound interest will a sum of Rs. 2000 become Rs. 2880 in 2 years?

A. 25%

B. 18%

C. 15%

D. 20%

Answer: Option D

2000(1+r)² = 2880 ⇒ (1+r)² = 1.44 = (1.2)² ⇒ r = 20%.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The difference between simple interest and compound interest on a certain sum of money for 2 years at 6% per annum is Rs. 144. Find the sum.

A. Rs. 36000

B. Rs. 48000

C. Rs. 44000

D. Rs. 40000

Correct Answer: Option D

Explanation:
Difference for 2 years = P * (R/100)^2 => 144 = P * (6/100)^2 => 144 = P * (36 / 10000) => P = (144 * 10000) / 36 = Rs. 40000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money at compound interest triples in 7 years. In how many years will it become 27 times?

A. 21 years

B. 28 years

C. 18 years

D. 14 years

Correct Answer: Option A

Explanation:
27 = 3³, so 7 × 3 = 21 years.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on a sum for 1 year at 8% compounded half-yearly is Rs. 408. The sum is:

A. Rs. 5200

B. Rs. 5000

C. Rs. 4800

D. Rs. 5400

Correct Answer: Option B

Explanation:
A = P(1.04)² = P × 1.0816. CI = P × 0.0816 = 408 ⇒ P = 408 / 0.0816 = 5000.

This question belongs to: Maths Compound Interest