In how many years will a sum of Rs. 5000 become Rs. 6655 at 10% per annum compound interest? MCQ with Answer and Explanation

In how many years will a sum of Rs. 5000 become Rs. 6655 at 10% per annum compound interest?

A. 4 years

B. 5 years

C. 2 years

D. 3 years

Answer: Option D

5000 × (1.1)^n = 6655 ⇒ (1.1)^n = 1.331 = (1.1)³ ⇒ n = 3 years.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The difference between CI and SI on a sum for 2 years at 10% is Rs. 150. The sum is:

A. Rs. 12000

B. Rs. 15000

C. Rs. 13000

D. Rs. 14000

Correct Answer: Option B

Explanation:
D = P × 0.01 = 150 ⇒ P = 15000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money at compound interest doubles in 10 years. In how many years will it become 8 times?

A. 40 years

B. 30 years

C. 25 years

D. 20 years

Correct Answer: Option B

Explanation:
Doubles in 10 years, 8 = 2³, so time = 10 × 3 = 30 years.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The effective annual rate for 24% per annum compounded half-yearly is:

A. 25%

B. 26.50%

C. 25.44%

D. 26%

Correct Answer: Option C

Explanation:
Half-yearly rate 12%, (1.12)² = 1.2544, effective = 25.44%.

This question belongs to: Maths Compound Interest