At what rate percent per annum will Rs. 50000 amount to Rs. 54080 in 2 years, compound interest compounded annually? MCQ with Answer and Explanation

At what rate percent per annum will Rs. 50000 amount to Rs. 54080 in 2 years, compound interest compounded annually?

A. 4%

B. 5%

C. 3%

D. 6%

Answer: Option A

Amount/Principal = 54080 / 50000 = 5408 / 5000 = 2704 / 2500 = (52 / 50)^2 = (1.04)^2. Therefore, 1 + R/100 = 1.04 => R = 4%.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

A sum of Rs. 12000 deposited at compound interest becomes double after 5 years. After 20 years, it will become:

A. Rs. 182000

B. Rs. 96000

C. Rs. 120000

D. Rs. 192000

Correct Answer: Option D

Explanation:
In 20 years, there are 20 / 5 = 4 intervals of 5 years. Expansion factor = 2^4 = 16. Total amount = 12000 * 16 = Rs. 192000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The compound interest on Rs. 1700 at 10% per annum for 2 years is:

A. Rs. 374

B. Rs. 357

C. Rs. 391

D. Rs. 340

Correct Answer: Option B

Explanation:
A = 1700 × 1.21 = 2057, CI = 2057 − 1700 = Rs. 357.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on a sum for 3 years at 10% is Rs. 993. The sum is:

A. Rs. 2700

B. Rs. 3000

C. Rs. 3600

D. Rs. 3300

Correct Answer: Option B

Explanation:
CI = P[(1.1)³ − 1] = P × 0.331 = 993 ⇒ P = 993 / 0.331 = 3000.

This question belongs to: Maths Compound Interest