A sum of money becomes 1.44 times in 2 years at compound interest. The rate of interest is: MCQ with Answer and Explanation

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A sum of money becomes 1.44 times in 2 years at compound interest. The rate of interest is:

A. 22%

B. 24%

C. 20%

D. 18%

Answer: Option C

Solution (By JKSSB Mock Tests)

(1+r)² = 1.44 ⇒ 1+r = 1.2 ⇒ r = 20%.

This question belongs to: Maths Compound Interest

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Question #1

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In how many years will a sum of Rs. 1600 amount to Rs. 1852.20 at 5% compound interest?

A. 2.5 years

B. 3.5 years

C. 2 years

D. 3 years

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Correct Answer: Option D

Explanation:
1600(1.05)^t = 1852.20 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #2

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A sum of money at compound interest becomes Rs. 7396 in 2 years and Rs. 7950.70 in 3 years. Find the sum.

A. Rs. 6500

B. Rs. 6400

C. Rs. 6000

D. Rs. 6250

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Correct Answer: Option B

Explanation:
Rate = (7950.70/7396 - 1)*100 = 7.5%? 7950.70/7396 = 1.075, so 7.5%. P = 7396 / (1.075)² = 7396 / 1.155625 = 6400 exactly. Check: 1.075^2 = 1.155625, 6400*1.155625 = 7396. So answer 6400.

This question belongs to: Maths Compound Interest

Question #3

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Find the compound interest on Rs. 2000 at 10% per annum for 1.5 years compounded half-yearly.

A. Rs. 300

B. Rs. 350

C. Rs. 330

D. Rs. 315.25

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Correct Answer: Option D

Explanation:
Half-yearly rate 5%, n=3. A = 2000 × (1.05)³ = 2000 × 1.157625 = 2315.25, CI = 2315.25 − 2000 = Rs. 315.25.

This question belongs to: Maths Compound Interest

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