The simple interest on a sum for 2 years at 8% is Rs. 640. The compound interest on the same sum for 2 years at 8% is: MCQ with Answer and Explanation

The simple interest on a sum for 2 years at 8% is Rs. 640. The compound interest on the same sum for 2 years at 8% is:

A. Rs. 678.40

B. Rs. 665.60

C. Rs. 684.00

D. Rs. 672.00

Answer: Option B

P = 64000/(8×2) = 4000. CI = 4000[(1.08)² − 1] = 4000 × 0.1664 = Rs. 665.60.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The effective annual rate for 7% per annum compounded half-yearly is:

A. 7.25%

B. 7.12%

C. 7.20%

D. 7.10%

Correct Answer: Option B

Explanation:
Half-yearly rate 3.5%, (1.035)² = 1.071225, effective = 7.1225% ≈ 7.12%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

What sum will amount to Rs. 5832 in 2 years at 8% per annum compound interest?

A. Rs. 4800

B. Rs. 5000

C. Rs. 5400

D. Rs. 5200

Correct Answer: Option B

Explanation:
P = 5832 / (1.08)² = 5832 / 1.1664 = 5000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money becomes 2 times in 4 years at compound interest. In how many years will it become 8 times?

A. 8 years

B. 12 years

C. 10 years

D. 16 years

Correct Answer: Option B

Explanation:
2 times in 4 years; 8 = 2³, so 4 × 3 = 12 years.

This question belongs to: Maths Compound Interest