In how many years will Rs. 3500 amount to Rs. 4235 at 10% per annum compound interest? MCQ with Answer and Explanation

In how many years will Rs. 3500 amount to Rs. 4235 at 10% per annum compound interest?

A. 1.5 years

B. 1 year

C. 2.5 years

D. 2 years

Answer: Option D

3500(1.1)^t = 4235 ⇒ (1.1)^t = 1.21 ⇒ t = 2.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

At what rate percent compound interest will Rs. 2400 amount to Rs. 2646 in 2 years?

A. 6%

B. 4%

C. 7%

D. 5%

Correct Answer: Option D

Explanation:
2400(1+r)² = 2646 ⇒ (1+r)² = 1.1025 ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

Find the compound interest on Rs. 8500 at 8% per annum for 2 years.

A. Rs. 1430

B. Rs. 1414.40

C. Rs. 1420

D. Rs. 1440

Correct Answer: Option B

Explanation:
A = 8500 × (1.08)² = 8500 × 1.1664 = 9914.40, CI = 9914.40 − 8500 = Rs. 1414.40.

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 16 times of itself?

A. 20 years

B. 30 years

C. 15 years

D. 25 years

Correct Answer: Option A

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