A sum of money at compound interest amounts to Rs. 6655 in 3 years and to Rs. 7320.50 in 4 years. Find the rate of interest. MCQ with Answer and Explanation

Question

A sum of money at compound interest amounts to Rs. 6655 in 3 years and to Rs. 7320.50 in 4 years. Find the rate of interest.

A. 10%

B. 11%

C. 8%

D. 9%

Answer: Option A

Solution (By JKSSB Mock Tests)

Rate = (7320.50/6655 − 1) × 100 = (1.1 − 1) × 100 = 10%.

This question belongs to: Maths Compound Interest

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Question #1

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At what rate percent compound interest will Rs. 10000 amount to Rs. 12100 in 2 years?

A. 8%

B. 10%

C. 12%

D. 15%

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Correct Answer: Option B

Explanation:
10000(1+r)² = 12100 ⇒ (1+r)² = 1.21 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

Question #2

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What is the difference between the compound interest and simple interest on Rs. 4000 for 2 years at 5% per annum?

A. Rs. 10

B. Rs. 20

C. Rs. 15

D. Rs. 25

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Correct Answer: Option A

Explanation:
Difference for 2 years = P * (R/100)^2 = 4000 * (5/100)^2 = 4000 * (25 / 10000) = Rs. 10.

This question belongs to: Maths Compound Interest

Question #3

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Find the compound interest on Rs. 8000 for 1 year at 10% per annum, compounded quarterly.

A. Rs. 831.25

B. Rs. 810.20

C. Rs. 830.50

D. Rs. 824.30

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Correct Answer: Option A

Explanation:
Quarterly rate = 10/4 = 2.5%. Time = 1 year = 4 quarters. Amount = 8000 * (1 + 2.5/100)^4 = 8000 * (41/40)^4 = 8000 * (2825761 / 2560000) = 2825761 / 320 = Rs. 8830.50. (Let's check 8000 * (1.025)^4 = 8000 * 1.10381289 = Rs. 8830.50. CI = Rs. 830.50. Correct option is C).

This question belongs to: Maths Compound Interest

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