At what rate percent compound interest will Rs. 1600 amount to Rs. 1852.20 in 3 years? MCQ with Answer and Explanation

At what rate percent compound interest will Rs. 1600 amount to Rs. 1852.20 in 3 years?

A. 6%

B. 5%

C. 7%

D. 4%

Answer: Option B

1600(1+r)³ = 1852.20 ⇒ (1+r)³ = 1.157625 = (1.05)³ ⇒ r = 5%.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

A sum of money at compound interest becomes 9 times in 4 years. In how many years will it become 81 times?

A. 10 years

B. 8 years

C. 7 years

D. 6 years

Correct Answer: Option B

Explanation:
81 = 9², so 4 × 2 = 8 years.

This question belongs to: Maths Compound Interest

Question #2 Report Error

If the simple interest on a sum for 2 years at 8% is Rs. 400, the compound interest on the same sum for 2 years at 8% is:

A. Rs. 424

B. Rs. 440

C. Rs. 416

D. Rs. 432

Correct Answer: Option C

Explanation:
P = SI × 100 / (8×2) = 40000/16 = 2500. CI = 2500[(1.08)² − 1] = 2500 × 0.1664 = Rs. 416.

This question belongs to: Maths Compound Interest

Question #3 Report Error

What sum will produce Rs. 204 as compound interest in 2 years at 4% per annum?

A. Rs. 2400

B. Rs. 2700

C. Rs. 2600

D. Rs. 2500

Correct Answer: Option D

Explanation:
P = 204 / 0.0816 = 2500.

This question belongs to: Maths Compound Interest