At what rate will Rs. 8000 amount to Rs. 9261 in 3 years at compound interest? MCQ with Answer and Explanation

At what rate will Rs. 8000 amount to Rs. 9261 in 3 years at compound interest?

A. 8%

B. 5%

C. 6%

D. 4%

Answer: Option B

8000(1+r)³ = 9261 ⇒ (1+r)³ = 1.157625 = (1.05)³ ⇒ r = 5%.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

In how many years will a sum of Rs. 2000 amount to Rs. 2662 at 10% per annum compound interest?

A. 4 years

B. 3 years

C. 2 years

D. 5 years

Correct Answer: Option B

Explanation:
2000 × (1.1)^t = 2662 ⇒ (1.1)^t = 1.331 = (1.1)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The simple interest on a sum for 2 years at 10% is Rs. 1000. The compound interest on the same sum for 2 years at 10% is:

A. Rs. 1025

B. Rs. 1050

C. Rs. 1000

D. Rs. 1100

Correct Answer: Option B

Explanation:
P = 100000/(10×2) = 5000. CI = 5000 × 0.21 = 1050.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money placed at compound interest becomes double of itself in 5 years. In how many years will it become 32 times of itself?

A. 35 years

B. 25 years

C. 30 years

D. 20 years

Correct Answer: Option B

Explanation:
The sum becomes 2^1 times in 5 years. It will become 32 (2^5) times in 5 * 5 = 25 years.

This question belongs to: Maths Compound Interest