A sum of money at compound interest becomes 2.56 times in 2 years. The rate of interest is: MCQ with Answer and Explanation

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A sum of money at compound interest becomes 2.56 times in 2 years. The rate of interest is:

A. 60%

B. 65%

C. 55%

D. 50%

Answer: Option A

Solution (By JKSSB Mock Tests)

(1+r)² = 2.56 ⇒ 1+r = 1.6 ⇒ r = 60%.

This question belongs to: Maths Compound Interest

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Question #1

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At what rate percent per annum will Rs. 32000 amount to Rs. 37232 in 3 years, compound interest compounded annually?

A. 6%

B. 4%

C. 5%

D. 8%

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Correct Answer: Option C

Explanation:
Amount/Principal = 37232 / 32000 = 4654 / 4000 = 9261 / 8000 = (21 / 20)^3. Therefore, 1 + R/100 = 21/20 => R/100 = 1/20 => R = 5%.

This question belongs to: Maths Compound Interest

Question #2

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A certain sum amounts to Rs. 2205 in 2 years at 5% compound interest. The sum is:

A. Rs. 2000

B. Rs. 2100

C. Rs. 2150

D. Rs. 1900

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Correct Answer: Option A

Explanation:
P = 2205 / (1.05)² = 2205 / 1.1025 = 2000.

This question belongs to: Maths Compound Interest

Question #3

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The difference between CI and SI on Rs. 3000 for 2 years at 6% is:

A. Rs. 11.20

B. Rs. 9.60

C. Rs. 10.00

D. Rs. 10.80

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Correct Answer: Option D

Explanation:
D = 3000 × (0.06)² = 3000 × 0.0036 = Rs. 10.80.

This question belongs to: Maths Compound Interest

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