At what rate percent per annum will Rs. 20000 amount to Rs. 24200 in 2 years, compound interest compounded annually? MCQ with Answer and Explanation
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Question #1
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A sum of money invested at compound interest doubles itself in 10 years. In how many years will it become 4 times of itself?
Correct Answer: Option B
Explanation:
The sum doubles (2^1) in 10 years. It will become 4 (2^2) times in 2 * 10 = 20 years.
The sum doubles (2^1) in 10 years. It will become 4 (2^2) times in 2 * 10 = 20 years.
This question belongs to:
Maths
Compound Interest
Question #2
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A sum of money at compound interest becomes 9 times in 4 years. In how many years will it become 81 times?
Correct Answer: Option D
Explanation:
81 = 9², so 4 × 2 = 8 years.
81 = 9², so 4 × 2 = 8 years.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 410. What would be the simple interest on the same sum at the same rate for the same time?
Correct Answer: Option C
Explanation:
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 410 => 1% of sum = 40. Simple Interest = 10% of sum = 10 * 40 = Rs. 400.
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 410 => 1% of sum = 40. Simple Interest = 10% of sum = 10 * 40 = Rs. 400.
This question belongs to:
Maths
Compound Interest
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