In how many years will Rs. 8000 amount to Rs. 8820 at 5% per annum compound interest? MCQ with Answer and Explanation

In how many years will Rs. 8000 amount to Rs. 8820 at 5% per annum compound interest?

A. 3 years

B. 1 year

C. 2 years

D. 4 years

Answer: Option C

8000(1.05)^t = 8820 ⇒ (1.05)^t = 1.1025 ⇒ t = 2.

This question belongs to: Maths Compound Interest

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Question #1 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. 15 years

B. 30 years

C. 25 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 #2 Report Error

A sum of Rs. 12000 deposited at compound interest becomes double after 5 years. After 20 years, it will become:

A. Rs. 120000

B. Rs. 96000

C. Rs. 182000

D. Rs. 192000

Correct Answer: Option D

Explanation:
In 20 years, there are 20 / 5 = 4 intervals of 5 years. Expansion factor = 2^4 = 16. Total amount = 12000 * 16 = Rs. 192000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The effective annual rate for 15% per annum compounded half-yearly is:

A. 15.25%

B. 15.75%

C. 15.50%

D. 15.56%

Correct Answer: Option D

Explanation:
Half-yearly rate 7.5%, (1.075)² = 1.155625, effective = 15.5625% ≈ 15.56%.

This question belongs to: Maths Compound Interest