The compound interest on a certain sum for 2 years at 4% per annum is Rs. 408. Find the principal sum. MCQ with Answer and Explanation

The compound interest on a certain sum for 2 years at 4% per annum is Rs. 408. Find the principal sum.

A. Rs. 4800

B. Rs. 5000

C. Rs. 5200

D. Rs. 5400

Answer: Option B

Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Given 8.16% of P = 408 => P = 408 / 0.0816 = Rs. 5000.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The compound interest on Rs. 4900 at 10% per annum for 2 years is:

A. Rs. 1078

B. Rs. 980

C. Rs. 1029

D. Rs. 1127

Correct Answer: Option C

Explanation:
A = 4900 × 1.21 = 5929, CI = 5929 − 4900 = Rs. 1029.

This question belongs to: Maths Compound Interest

Question #2 Report Error

At what rate percent compound interest will Rs. 1600 amount to Rs. 1852.20 in 3 years?

A. 7%

B. 6%

C. 5%

D. 4%

Correct Answer: Option C

Explanation:
1600(1+r)³ = 1852.20 ⇒ (1+r)³ = 1.157625 = (1.05)³ ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money doubles in 6 years at compound interest. In how many years will it become 8 times?

A. 18 years

B. 14 years

C. 16 years

D. 12 years

Correct Answer: Option A

Explanation:
2³ = 8, so 6 × 3 = 18 years.

This question belongs to: Maths Compound Interest