At what rate percent compound interest will Rs. 5000 amount to Rs. 6050 in 2 years? MCQ with Answer and Explanation

At what rate percent compound interest will Rs. 5000 amount to Rs. 6050 in 2 years?

A. 12%

B. 10%

C. 8%

D. 9%

Answer: Option B

5000(1+r)² = 6050 ⇒ (1+r)² = 1.21 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

A sum of money placed at compound interest becomes double of itself in 3 years. In how many years will it become 8 times of itself?

A. 9 years

B. 12 years

C. 15 years

D. 6 years

Correct Answer: Option A

Explanation:
The sum becomes 2^1 times in 3 years. It will become 8 (2^3) times in 3 * 3 = 9 years.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The difference between CI and SI on a certain sum for 2 years at 6% is Rs. 36. The sum is:

A. Rs. 9000

B. Rs. 10000

C. Rs. 11000

D. Rs. 8000

Correct Answer: Option B

Explanation:
D = P × (0.06)² = P × 0.0036 = 36 ⇒ P = 10000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

If the compound interest on a sum for 2 years at 5% is Rs. 307.50, the simple interest on the same sum for 2 years at 5% is:

A. Rs. 310

B. Rs. 300

C. Rs. 290

D. Rs. 280

Correct Answer: Option B

Explanation:
CI = P × 0.1025 = 307.50 ⇒ P = 3000. SI = 3000 × 5 × 2 / 100 = Rs. 300.

This question belongs to: Maths Compound Interest