The simple interest on a sum for 3 years at 8% is Rs. 960. 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 3 years at 8% is Rs. 960. The compound interest on the same sum for 2 years at 8% is:

A. Rs. 665.60

B. Rs. 630.40

C. Rs. 678.40

D. Rs. 672.00

Answer: Option A

P = 96000/(8×3) = 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

A sum of money invested at compound interest doubles itself in 17 years. In how many years will it become 4 times of itself?

A. 34 years

B. 51 years

C. 26 years

D. 42 years

Correct Answer: Option A

Explanation:
The sum doubles (2^1) in 17 years. It will become 4 (2^2) times in 2 * 17 = 34 years.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The compound interest on a sum for 2 years at 5% is Rs. 102.50. Find the sum.

A. Rs. 1100

B. Rs. 1000

C. Rs. 1050

D. Rs. 950

Correct Answer: Option B

Explanation:
CI = P × 0.1025 = 102.50 ⇒ P = 1000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

At what rate percent compound interest will a sum of Rs. 4000 become Rs. 5324 in 3 years?

A. 10%

B. 8%

C. 12%

D. 15%

Correct Answer: Option A

Explanation:
4000(1+r)³ = 5324 ⇒ (1+r)³ = 1.331 = (1.1)³ ⇒ r = 10%.

This question belongs to: Maths Compound Interest