In how many years will Rs. 1600 amount to Rs. 1764 at 5% per annum compound interest? MCQ with Answer and Explanation

In how many years will Rs. 1600 amount to Rs. 1764 at 5% per annum compound interest?

A. 2.5 years

B. 2 years

C. 1 year

D. 1.5 years

Answer: Option B

1600(1.05)^t = 1764 ⇒ (1.05)^t = 1.1025 ⇒ t = 2.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The difference between simple interest and compound interest on a certain sum of money for 2 years at 4% per annum is Rs. 64. Find the sum.

A. Rs. 44000

B. Rs. 48000

C. Rs. 36000

D. Rs. 40000

Correct Answer: Option D

Explanation:
Difference for 2 years = P * (R/100)^2 => 64 = P * (4/100)^2 => 64 = P * (16 / 10000) => P = (64 * 10000) / 16 = Rs. 40000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money placed at compound interest becomes double of itself in 5 years. In how many years will it become 16 times of itself?

A. 25 years

B. 30 years

C. 15 years

D. 20 years

Correct Answer: Option D

Explanation:
The sum becomes 2^1 times in 5 years. It will become 16 (2^4) times in 4 * 5 = 20 years.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money at compound interest doubles in 6 years. In how many years will it become 4 times?

A. 9 years

B. 10 years

C. 18 years

D. 12 years

Correct Answer: Option D

Explanation:
Doubles in 6 years, 4 = 2², so 6 × 2 = 12 years.

This question belongs to: Maths Compound Interest