A sum of money invested at compound interest amounts to Rs. 800 in 3 years and to Rs. 840 in 4 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. 800 in 3 years and to Rs. 840 in 4 years. Find the rate of interest per annum.

A. 5%

B. 6%

C. 7%

D. 4%

Answer: Option A

Solution (By JKSSB Mock Tests)

Interest earned in the 4th year = 840 - 800 = Rs. 40. Rate of interest = (Interest / Principal at start of year) * 100 = (40 / 800) * 100 = 5%.

This question belongs to: Maths Compound Interest

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Question #1

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Find the compound interest on Rs. 5600 at 5% per annum for 2 years.

A. Rs. 600

B. Rs. 574

C. Rs. 560

D. Rs. 588

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Correct Answer: Option B

Explanation:
A = 5600 × 1.1025 = 6174, CI = 6174 − 5600 = Rs. 574.

This question belongs to: Maths Compound Interest

Question #2

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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

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Correct Answer: Option B

Explanation:
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

Question #3

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The difference between the compound interest compounded annually and the simple interest on a certain sum of money for 2 years at 6% per annum is Rs. 14.40. Find the sum.

A. Rs. 4200

B. Rs. 4400

C. Rs. 3600

D. Rs. 4000

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Correct Answer: Option D

Explanation:
Difference for 2 years = P * (R/100)^2 => 14.40 = P * (6/100)^2 => 14.40 = P * (36 / 10000) => P = (14.40 * 10000) / 36 = 144000 / 36 = Rs. 4000.

This question belongs to: Maths Compound Interest

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