In how many years will Rs. 2000 amount to Rs. 2205 at 5% per annum compound interest? MCQ with Answer and Explanation

In how many years will Rs. 2000 amount to Rs. 2205 at 5% per annum compound interest?

A. 2.5 years

B. 3 years

C. 1.5 years

D. 2 years

Answer: Option D

2000(1.05)^t = 2205 ⇒ (1.05)^t = 1.1025 = (1.05)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

A sum of money at compound interest doubles in 9 years. In how many years will it become 4 times?

A. 15 years

B. 21 years

C. 18 years

D. 12 years

Correct Answer: Option C

Explanation:
4 = 2², so 9 × 2 = 18 years.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The effective rate of interest for 10% per annum compounded half-yearly is:

A. 10.75%

B. 10.25%

C. 10.50%

D. 10.10%

Correct Answer: Option B

Explanation:
Effective rate = (1.05)² − 1 = 1.1025 − 1 = 0.1025 = 10.25%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on Rs. 5400 at 10% per annum for 2 years is:

A. Rs. 1240

B. Rs. 1188

C. Rs. 1200

D. Rs. 1134

Correct Answer: Option D

Explanation:
A = 5400 × (1.1)² = 5400 × 1.21 = 6534, CI = 6534 − 5400 = Rs. 1134.

This question belongs to: Maths Compound Interest