A sum of money at compound interest becomes 2.25 times in 2 years. In how many years will it become 5.0625 times? MCQ with Answer and Explanation

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A sum of money at compound interest becomes 2.25 times in 2 years. In how many years will it become 5.0625 times?

A. 5 years

B. 3 years

C. 6 years

D. 4 years

Answer: Option D

Solution (By JKSSB Mock Tests)

2.25 = (1.5)², so rate 50%. 5.0625 = 2.25², so 4 years. Or 2.25 times in 2 years, 5.0625 = (2.25)², so time 2×2=4.

This question belongs to: Maths Compound Interest

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Question #1

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In how many years will Rs. 1200 amount to Rs. 1389.15 at 5% compound interest?

A. 3.5 years

B. 2.5 years

C. 2 years

D. 3 years

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Correct Answer: Option D

Explanation:
1200(1.05)^t = 1389.15 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #2

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The effective annual rate for 15% per annum compounded half-yearly is:

A. 15.75%

B. 15.56%

C. 15.25%

D. 15.50%

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Correct Answer: Option B

Explanation:
Half-yearly rate 7.5%, (1.075)² = 1.155625, effective = 15.5625% ≈ 15.56%.

This question belongs to: Maths Compound Interest

Question #3

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A sum of money placed at compound interest becomes double of itself in 5 years. In how many years will it become 16 times of itself?

A. 15 years

B. 20 years

C. 25 years

D. 30 years

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Correct Answer: Option B

Explanation:
The sum becomes 2^1 times in 5 years. It will become 16 (2^4) times in 4 * 5 = 20 years.

This question belongs to: Maths Compound Interest

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