At what rate percent per annum will Rs. 50000 amount to Rs. 58320 in 2 years, compound interest compounded annually? MCQ with Answer and Explanation

At what rate percent per annum will Rs. 50000 amount to Rs. 58320 in 2 years, compound interest compounded annually?

A. 10%

B. 6%

C. 12%

D. 8%

Answer: Option D

Amount/Principal = 58320 / 50000 = 5832 / 5000 = 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

A sum of money placed at compound interest becomes double of itself in 5 years. In how many years will it become 16 times of itself?

A. 15 years

B. 25 years

C. 30 years

D. 20 years

Correct Answer: Option D

Explanation:
The sum becomes 2^1 times in 5 years. It will become 16 (2^4) times in 4 * 5 = 20 years.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The difference between the simple interest and compound interest on a certain sum of money for 2 years at 12% per annum is Rs. 72. Find the sum.

A. Rs. 5000

B. Rs. 4500

C. Rs. 6000

D. Rs. 5500

Correct Answer: Option A

Explanation:
Difference for 2 years = P * (R/100)^2 => 72 = P * (12/100)^2 => 72 = P * (144 / 10000) => P = (72 * 10000) / 144 = 5000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on Rs. 3000 for 3 years at 5% per annum is:

A. Rs. 473.00

B. Rs. 472.875

C. Rs. 475.00

D. Rs. 472.50

Correct Answer: Option B

Explanation:
A = 3000 × (1.05)³ = 3000 × 1.157625 = 3472.875, CI = 3472.875 − 3000 = Rs. 472.875.

This question belongs to: Maths Compound Interest