A sum of Rs. 12000 deposited at compound interest becomes double after 5 years. After 20 years, it will become: MCQ with Answer and Explanation

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A sum of Rs. 12000 deposited at compound interest becomes double after 5 years. After 20 years, it will become:

A. Rs. 192000

B. Rs. 120000

C. Rs. 182000

D. Rs. 96000

Answer: Option A

Solution (By JKSSB Mock Tests)

In 20 years, there are 20 / 5 = 4 intervals of 5 years. Expansion factor = 2^4 = 16. Total amount = 12000 * 16 = Rs. 192000.

This question belongs to: Maths Compound Interest

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Question #1

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The compound interest on Rs. 3000 at 5% per annum for 3 years is:

A. Rs. 478.00

B. Rs. 475.00

C. Rs. 472.875

D. Rs. 472.50

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Correct Answer: Option C

Explanation:
A = 3000 × (1.05)³ = 3000 × 1.157625 = 3472.875, CI = 3472.875 − 3000 = Rs. 472.875.

This question belongs to: Maths Compound Interest

Question #2

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The difference between simple interest and compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 100. Find the sum.

A. Rs. 9000

B. Rs. 11000

C. Rs. 12000

D. Rs. 10000

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Correct Answer: Option D

Explanation:
Difference for 2 years = P * (R/100)^2 => 100 = P * (10/100)^2 => 100 = P * 0.01 => P = Rs. 10000.

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Question #3

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At what rate percent compound interest will Rs. 625 become Rs. 676 in 2 years?

A. 5%

B. 4%

C. 6%

D. 3%

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Correct Answer: Option B

Explanation:
625(1+r)² = 676 ⇒ (1+r)² = 1.0816 = (1.04)² ⇒ r = 4%.

This question belongs to: Maths Compound Interest

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