At what rate percent per annum will Rs. 80000 amount to Rs. 96800 in 2 years, compound interest compounded annually? MCQ with Answer and Explanation

At what rate percent per annum will Rs. 80000 amount to Rs. 96800 in 2 years, compound interest compounded annually?

A. 8%

B. 10%

C. 14%

D. 12%

Answer: Option B

Amount/Principal = 96800 / 80000 = 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

The effective rate of interest for 4% per annum compounded half-yearly is:

A. 4.08%

B. 4.20%

C. 4.16%

D. 4.04%

Correct Answer: Option D

Explanation:
Effective = (1.02)² − 1 = 1.0404 − 1 = 4.04%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money at compound interest becomes 8 times in 3 years. In how many years will it become 512 times?

A. 6 years

B. 7 years

C. 12 years

D. 9 years

Correct Answer: Option D

Explanation:
512 = 8³, so 3 × 3 = 9 years.

This question belongs to: Maths Compound Interest

Question #3 Report Error

If the compound interest on a sum for 2 years at 10% is Rs. 840, the simple interest on the same sum for 2 years at the same rate is:

A. Rs. 820

B. Rs. 780

C. Rs. 760

D. Rs. 800

Correct Answer: Option D

Explanation:
CI = P[(1.1)² − 1] = 0.21P = 840 ⇒ P = 4000. SI = 4000 × 10 × 2 / 100 = 800.

This question belongs to: Maths Compound Interest