The compound interest on a certain sum for 2 years at 8% per annum is Rs. 416. Find the principal sum. MCQ with Answer and Explanation

The compound interest on a certain sum for 2 years at 8% per annum is Rs. 416. Find the principal sum.

A. Rs. 2400

B. Rs. 2800

C. Rs. 2600

D. Rs. 2500

Answer: Option D

Effective rate of compound interest for 2 years at 8% = 8 + 8 + (88)/100 = 16.64%. Given 16.64% of P = 416 => P = 416 / 0.1664 = Rs. 2500.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The value of a machine depreciates at 20% per annum. Its present value is Rs. 32000. What was its value 2 years ago?

A. Rs. 48000

B. Rs. 40000

C. Rs. 50000

D. Rs. 51200

Correct Answer: Option C

Explanation:
Value 2 years ago = Present value / (1 − 0.2)² = 32000 / 0.64 = 50000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money at compound interest doubles in 15 years. In how many years will it become 128 times?

A. 105 years

B. 120 years

C. 90 years

D. 75 years

Correct Answer: Option A

Explanation:
128 = 2⁷, so 15 × 7 = 105 years.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on a sum for 2 years at 10% compounded half-yearly is Rs. 215.50. The sum is:

A. Rs. 950

B. Rs. 1050

C. Rs. 900

D. Rs. 1000

Correct Answer: Option D

Explanation:
Half-yearly rate 5%, n=4. CI = P[(1.05)⁴ − 1] = P × 0.21550625 = 215.50 ⇒ P = 215.50 / 0.21550625 = 1000.

This question belongs to: Maths Compound Interest