The compound interest on Rs. 5000 at 4% per annum for 2 years compounded annually is: MCQ with Answer and Explanation

The compound interest on Rs. 5000 at 4% per annum for 2 years compounded annually is:

A. Rs. 416

B. Rs. 408

C. Rs. 400

D. Rs. 424

Answer: Option B

A = 5000 × (1.04)² = 5000 × 1.0816 = 5408, CI = 5408 − 5000 = Rs. 408.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

At compound interest, a sum becomes 1.21 times in 2 years. The rate of interest per annum is:

A. 11%

B. 10%

C. 9%

D. 12%

Correct Answer: Option B

Explanation:
(1 + r)² = 1.21 ⇒ 1 + r = 1.1 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

Find the compound interest on Rs. 12000 at 8% per annum for 1 year compounded half-yearly.

A. Rs. 998.40

B. Rs. 988.80

C. Rs. 979.20

D. Rs. 960

Correct Answer: Option C

Explanation:
Half-yearly rate 4%, n=2. A = 12000 × (1.04)² = 12000 × 1.0816 = 12979.20, CI = 12979.20 − 12000 = Rs. 979.20.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money placed at compound interest becomes double of itself in 4 years. In how many years will it become 32 times of itself?

A. 24 years

B. 20 years

C. 28 years

D. 16 years

Correct Answer: Option B

Explanation:
The sum becomes 2^1 times in 4 years. It will become 32 (2^5) times in 5 * 4 = 20 years.

This question belongs to: Maths Compound Interest