At what rate percent per annum will Rs. 1000 amount to Rs. 1331 in 3 years, compound interest compounded annually? MCQ with Answer and Explanation
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Question #1
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A sum of money at compound interest becomes 2 times in 3 years. In how many years will it become 32 times?
Correct Answer: Option D
Explanation:
32 = 2⁵, so 3 × 5 = 15 years.
32 = 2⁵, so 3 × 5 = 15 years.
This question belongs to:
Maths
Compound Interest
Question #2
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The difference between simple interest and compound interest on Rs. 18000 for 2 years is Rs. 405. Find the rate of interest per annum.
Correct Answer: Option B
Explanation:
Difference for 2 years = P * (R/100)^2 => 405 = 18000 * (R/100)^2 => 405 = 1.8 * R^2 => R^2 = 405 / 1.8 = 225 => R = 15%.
Difference for 2 years = P * (R/100)^2 => 405 = 18000 * (R/100)^2 => 405 = 1.8 * R^2 => R^2 = 405 / 1.8 = 225 => R = 15%.
This question belongs to:
Maths
Compound Interest
Question #3
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The effective annual rate for 12% per annum compounded half-yearly is:
Correct Answer: Option A
Explanation:
Effective = (1.06)² − 1 = 1.1236 − 1 = 12.36%.
Effective = (1.06)² − 1 = 1.1236 − 1 = 12.36%.
This question belongs to:
Maths
Compound Interest
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