At what rate percent per annum will Rs. 32000 amount to Rs. 37232 in 3 years, compound interest compounded annually? MCQ with Answer and Explanation

At what rate percent per annum will Rs. 32000 amount to Rs. 37232 in 3 years, compound interest compounded annually?

A. 8%

B. 5%

C. 6%

D. 4%

Answer: Option B

Amount/Principal = 37232 / 32000 = 4654 / 4000 = 9261 / 8000 = (21 / 20)^3. Therefore, 1 + R/100 = 21/20 => R/100 = 1/20 => R = 5%.

This question belongs to: Maths Compound Interest

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Question #1 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. 280

B. Rs. 300

C. Rs. 290

D. Rs. 310

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

Question #2 Report Error

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

A. 40 years

B. 30 years

C. 25 years

D. 20 years

Correct Answer: Option B

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

This question belongs to: Maths Compound Interest

Question #3 Report Error

At what rate percent per annum will Rs. 10000 amount to Rs. 11664 in 2 years, compound interest compounded annually?

A. 8%

B. 10%

C. 6%

D. 12%

Correct Answer: Option A

Explanation:
Amount/Principal = 11664 / 10000. Taking square root: sqrt(11664/10000) = 108 / 100 = 1.08. Therefore, 1 + R/100 = 1.08 => R = 8%.

This question belongs to: Maths Compound Interest