At what rate percent per annum will Rs. 64000 amount to Rs. 68921 in 3 years, compound interest compounded annually? MCQ with Answer and Explanation

At what rate percent per annum will Rs. 64000 amount to Rs. 68921 in 3 years, compound interest compounded annually?

A. 2.5%

B. 5%

C. 6%

D. 4%

Answer: Option A

Amount/Principal = 68921 / 64000 = (41 / 40)^3. Therefore, 1 + R/100 = 41/40 => R/100 = 1/40 => R = 2.5%.

This question belongs to: Maths Compound Interest

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Question #1 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. 400

B. Rs. 405

C. Rs. 410

D. Rs. 415

Correct Answer: Option C

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

This question belongs to: Maths Compound Interest

Question #2 Report Error

The value of a machine depreciates at the rate of 10% per annum. If its present value is Rs. 162000, what was its value 2 years ago?

A. Rs. 220000

B. Rs. 200000

C. Rs. 210000

D. Rs. 190000

Correct Answer: Option B

Explanation:
Value 2 years ago = 162000 / (1 - 10/100)^2 = 162000 / (0.9)^2 = 162000 / 0.81 = Rs. 200000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money invested at compound interest doubles itself in 15 years. In how many years will it become 4 times of itself?

A. 20 years

B. 60 years

C. 30 years

D. 45 years

Correct Answer: Option C

Explanation:
The sum doubles (2^1) in 15 years. It will become 4 (2^2) times in 2 * 15 = 30 years.

This question belongs to: Maths Compound Interest