The compound interest on a certain sum for 2 years at 4% per annum is Rs. 816. Find the principal sum. MCQ with Answer and Explanation
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Question #1
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A sum of money becomes Rs. 24200 in 2 years and Rs. 26620 in 3 years at compound interest compounded annually. Find the sum.
Correct Answer: Option B
Explanation:
Rate of interest = ((26620 - 24200) / 24200) * 100 = (2420 / 24200) * 100 = 10%. Principal P = 24200 / (1 + 10/100)^2 = 24200 / 1.21 = Rs. 20000.
Rate of interest = ((26620 - 24200) / 24200) * 100 = (2420 / 24200) * 100 = 10%. Principal P = 24200 / (1 + 10/100)^2 = 24200 / 1.21 = Rs. 20000.
This question belongs to:
Maths
Compound Interest
Question #2
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In how many years will Rs. 2000 amount to Rs. 2420 at 10% per annum compound interest, compounded annually?
Correct Answer: Option B
Explanation:
Amount/Principal = 2420 / 2000 = 121 / 100 = (11 / 10)^2. Since the annual rate is 10%, expansion factor is 11/10. Therefore, time = 2 years.
Amount/Principal = 2420 / 2000 = 121 / 100 = (11 / 10)^2. Since the annual rate is 10%, expansion factor is 11/10. Therefore, time = 2 years.
This question belongs to:
Maths
Compound Interest
Question #3
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A sum of money becomes 2 times in 4 years at compound interest. In how many years will it become 8 times?
Correct Answer: Option A
Explanation:
2 times in 4 years; 8 = 2³, so 4 × 3 = 12 years.
2 times in 4 years; 8 = 2³, so 4 × 3 = 12 years.
This question belongs to:
Maths
Compound Interest
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