A sum of money becomes Rs. 24200 in 2 years and Rs. 26620 in 3 years at compound interest compounded annually. Find the sum. MCQ with Answer and Explanation

Question

A sum of money becomes Rs. 24200 in 2 years and Rs. 26620 in 3 years at compound interest compounded annually. Find the sum.

A. Rs. 24000

B. Rs. 20000

C. Rs. 22000

D. Rs. 18000

Answer: Option B

Solution (By JKSSB Mock Tests)

Rate of interest = ((26620 - 24200) / 24200) * 100 = (2420 / 24200) * 100 = 10%. Principal P = 24200 / (1 + 10/100)^2 = 24200 / 1.21 = Rs. 20000.

This question belongs to: Maths Compound Interest

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Question #1

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A sum of money invested at compound interest doubles itself in 12 years. In how many years will it become 4 times of itself?

A. 36 years

B. 24 years

C. 30 years

D. 18 years

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Correct Answer: Option B

Explanation:
The sum doubles (2^1) in 12 years. It will become 4 (2^2) times in 2 * 12 = 24 years.

This question belongs to: Maths Compound Interest

Question #2

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Find the compound interest on Rs. 2500 at 8% per annum compounded half-yearly for 1 year.

A. Rs. 200

B. Rs. 212

C. Rs. 204

D. Rs. 208

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Correct Answer: Option C

Explanation:
Half-yearly rate = 4%, n=2. A = 2500 × (1.04)² = 2500 × 1.0816 = 2704, CI = 2704 − 2500 = Rs. 204.

This question belongs to: Maths Compound Interest

Question #3

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What sum will yield Rs. 410 as compound interest in 2 years at 5% per annum?

A. Rs. 4100

B. Rs. 4000

C. Rs. 3900

D. Rs. 3800

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Correct Answer: Option B

Explanation:
P = 410 / 0.1025 = 4000.

This question belongs to: Maths Compound Interest

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