In how many years will a sum of Rs. 800 become Rs. 926.10 at 5% compound interest? MCQ with Answer and Explanation

In how many years will a sum of Rs. 800 become Rs. 926.10 at 5% compound interest?

A. 3.5 years

B. 3 years

C. 2 years

D. 2.5 years

Answer: Option B

800(1.05)^t = 926.10 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

At what rate percent per annum will Rs. 10000 amount to Rs. 11664 in 2 years, compound interest compounded annually?

A. 10%

B. 8%

C. 6%

D. 12%

Correct Answer: Option B

Explanation:
Amount/Principal = 11664 / 10000. Taking square root: sqrt(11664/10000) = 108 / 100 = 1.08. Therefore, 1 + R/100 = 1.08 => R = 8%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

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

A. 4.04%

B. 4.20%

C. 4.16%

D. 4.08%

Correct Answer: Option A

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

This question belongs to: Maths Compound Interest

Question #3 Report Error

The difference between CI and SI on a sum for 2 years at 10% is Rs. 60. The sum is:

A. Rs. 6500

B. Rs. 5000

C. Rs. 6000

D. Rs. 5500

Correct Answer: Option C

Explanation:
D = P × 0.01 = 60 ⇒ P = 6000.

This question belongs to: Maths Compound Interest