A sum of money invested at compound interest amounts to Rs. 4624 in 2 years and to Rs. 4913 in 3 years. Find the rate of interest per annum. MCQ with Answer and Explanation

Question

A sum of money invested at compound interest amounts to Rs. 4624 in 2 years and to Rs. 4913 in 3 years. Find the rate of interest per annum.

A. 6.25%

B. 6%

C. 6.5%

D. 5%

Answer: Option A

Solution (By JKSSB Mock Tests)

Interest for the 3rd year = 4913 - 4624 = Rs. 289. Rate of interest = (289 / 4624) * 100 = 0.0625 * 100 = 6.25%.

This question belongs to: Maths Compound Interest

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Question #1

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The effective annual rate of interest for 8% per annum compounded quarterly is:

A. 8.24%

B. 8.42%

C. 8.30%

D. 8.16%

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Correct Answer: Option A

Explanation:
Quarterly rate 2%, (1.02)⁴ = 1.08243216, effective = 8.2432% ≈ 8.24%.

This question belongs to: Maths Compound Interest

Question #2

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Find the difference between compound interest and simple interest on Rs. 5000 for 2 years at 8% per annum.

A. Rs. 42

B. Rs. 36

C. Rs. 32

D. Rs. 40

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Correct Answer: Option C

Explanation:
Difference for 2 years = P * (R/100)^2 = 5000 * (8/100)^2 = 5000 * (64 / 10000) = Rs. 32.

This question belongs to: Maths Compound Interest

Question #3

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A sum of money at compound interest amounts to Rs. 10648 in 3 years and Rs. 11712.80 in 4 years. Find the sum.

A. Rs. 7500

B. Rs. 8500

C. Rs. 8000

D. Rs. 7000

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Correct Answer: Option C

Explanation:
Rate = (11712.80/10648 − 1) × 100 = 10%. P = 10648 / 1.331 = 8000.

This question belongs to: Maths Compound Interest

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