At what rate percent per annum compound interest will Rs. 400 amount to Rs. 484 in 2 years? MCQ with Answer and Explanation

At what rate percent per annum compound interest will Rs. 400 amount to Rs. 484 in 2 years?

A. 15%

B. 8%

C. 12%

D. 10%

Answer: Option D

400(1 + r)² = 484 ⇒ (1+r)² = 1.21 ⇒ 1+r = 1.1 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The compound interest on a sum for 1 year at 10% per annum compounded half-yearly is Rs. 410. Find the sum.

A. Rs. 3600

B. Rs. 4000

C. Rs. 3800

D. Rs. 4200

Correct Answer: Option B

Explanation:
CI = P[(1.05)² − 1] = 0.1025P = 410 ⇒ P = 4000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The difference between simple interest and compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 25. Find the sum.

A. Rs. 9000

B. Rs. 12000

C. Rs. 11000

D. Rs. 10000

Correct Answer: Option D

Explanation:
Difference for 2 years = P * (R/100)^2 => 25 = P * (5/100)^2 => 25 = P * (25 / 10000) => P = Rs. 10000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money placed at compound interest becomes double of itself in 7 years. In how many years will it become 16 times of itself?

A. 42 years

B. 28 years

C. 21 years

D. 35 years

Correct Answer: Option B

Explanation:
The sum becomes 2^1 times in 7 years. It will become 16 (2^4) times in 4 * 7 = 28 years.

This question belongs to: Maths Compound Interest