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. 7%

B. 5%

C. 6%

D. 4%

Answer: Option B

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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The effective annual rate for 10% per annum compounded quarterly is:

A. 10.50%

B. 10.25%

C. 10.47%

D. 10.38%

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Correct Answer: Option D

Explanation:
Quarterly rate 2.5%, (1.025)⁴ = 1.10381289, effective ≈ 10.38%.

This question belongs to: Maths Compound Interest

Question #2

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The difference between CI and SI on a sum for 2 years at 8% is Rs. 64. The sum is:

A. Rs. 8000

B. Rs. 11000

C. Rs. 9000

D. Rs. 10000

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Correct Answer: Option D

Explanation:
D = P × 0.0064 = 64 ⇒ P = 10000.

This question belongs to: Maths Compound Interest

Question #3

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

A. 8.42%

B. 8.24%

C. 8.16%

D. 8.30%

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Correct Answer: Option B

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

This question belongs to: Maths Compound Interest

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