At what rate percent per annum will Rs. 40000 amount to Rs. 48400 in 2 years, compound interest compounded annually? MCQ with Answer and Explanation

At what rate percent per annum will Rs. 40000 amount to Rs. 48400 in 2 years, compound interest compounded annually?

A. 10%

B. 14%

C. 8%

D. 12%

Answer: Option A

Amount/Principal = 48400 / 40000 = 121 / 100 = (11 / 10)^2. Therefore, 1 + R/100 = 11/10 => R/100 = 1/10 => R = 10%.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

Find the compound interest on Rs. 5000 at 10% per annum compounded half-yearly for 1 year.

A. Rs. 500

B. Rs. 550

C. Rs. 525

D. Rs. 512.50

Correct Answer: Option D

Explanation:
Half-yearly rate 5%, n=2. A = 5000 × (1.05)² = 5000 × 1.1025 = 5512.50, CI = 5512.50 − 5000 = Rs. 512.50.

This question belongs to: Maths Compound Interest

Question #2 Report Error

Find the compound interest on Rs. 1600 at 10% per annum for 2 years if the interest is compounded annually.

A. Rs. 320

B. Rs. 350

C. Rs. 336

D. Rs. 340

Correct Answer: Option C

Explanation:
A = 1600 × (1.1)² = 1600 × 1.21 = 1936, CI = 1936 − 1600 = Rs. 336.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The simple interest on a sum at 5% for 3 years is Rs. 600. The compound interest on the same sum for 2 years at 5% is:

A. Rs. 405

B. Rs. 410

C. Rs. 400

D. Rs. 415

Correct Answer: Option B

Explanation:
P = 60000/(5×3) = 4000. CI = 4000[(1.05)² − 1] = 4000 × 0.1025 = Rs. 410.

This question belongs to: Maths Compound Interest