What sum will amount to Rs. 1323 in 2 years at 5% compound interest? MCQ with Answer and Explanation
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Question #1
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A sum of money placed at compound interest triples itself in 5 years. In how many years will it become 9 times of itself?
Correct Answer: Option A
Explanation:
The sum becomes 3^1 times in 5 years. It will become 9 (3^2) times in 2 * 5 = 10 years.
The sum becomes 3^1 times in 5 years. It will become 9 (3^2) times in 2 * 5 = 10 years.
This question belongs to:
Maths
Compound Interest
Question #2
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What is the compound interest on Rs. 8000 at 5% per annum for 2 years?
Correct Answer: Option D
Explanation:
A = 8000 × (1.05)² = 8000 × 1.1025 = 8820, CI = 8820 − 8000 = Rs. 820.
A = 8000 × (1.05)² = 8000 × 1.1025 = 8820, CI = 8820 − 8000 = Rs. 820.
This question belongs to:
Maths
Compound Interest
Question #3
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The compound interest on a certain sum for 2 years at 4% per annum is Rs. 408. Find the principal sum.
Correct Answer: Option A
Explanation:
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Given 8.16% of P = 408 => P = 408 / 0.0816 = Rs. 5000.
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Given 8.16% of P = 408 => P = 408 / 0.0816 = Rs. 5000.
This question belongs to:
Maths
Compound Interest
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