At what rate percent per annum will Rs. 20000 amount to Rs. 23328 in 2 years, compound interest compounded annually? MCQ with Answer and Explanation

At what rate percent per annum will Rs. 20000 amount to Rs. 23328 in 2 years, compound interest compounded annually?

A. 6%

B. 12%

C. 10%

D. 8%

Answer: Option D

Amount/Principal = 23328 / 20000 = 11664 / 10000 = (108 / 100)^2. Therefore, 1 + R/100 = 1.08 => R = 8%.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The simple interest on a sum for 2 years at 6% is Rs. 480. The compound interest on the same sum for 2 years at 6% is:

A. Rs. 508.80

B. Rs. 499.20

C. Rs. 504.00

D. Rs. 494.40

Correct Answer: Option D

Explanation:
P = 48000/(6×2) = 4000. CI = 4000[(1.06)² − 1] = 4000 × 0.1236 = Rs. 494.40.

This question belongs to: Maths Compound Interest

Question #2 Report Error

What sum will amount to Rs. 9261 in 2 years at 5% per annum compound interest?

A. Rs. 8400

B. Rs. 8200

C. Rs. 8000

D. Rs. 8600

Correct Answer: Option A

Explanation:
P = 9261 / 1.1025 = 8400.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money at compound interest doubles in 10 years. In how many years will it become 8 times?

A. 20 years

B. 40 years

C. 25 years

D. 30 years

Correct Answer: Option D

Explanation:
Doubles in 10 years, 8 = 2³, so time = 10 × 3 = 30 years.

This question belongs to: Maths Compound Interest