At compound interest, a sum becomes 1.21 times in 2 years. The rate of interest per annum is: MCQ with Answer and Explanation

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At compound interest, a sum becomes 1.21 times in 2 years. The rate of interest per annum is:

A. 11%

B. 9%

C. 10%

D. 12%

Answer: Option C

Solution (By JKSSB Mock Tests)

(1 + r)² = 1.21 ⇒ 1 + r = 1.1 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

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Question #1

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The compound interest on a sum for 2 years at 8% is Rs. 665.60. The sum is:

A. Rs. 4400

B. Rs. 4000

C. Rs. 3800

D. Rs. 4200

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Correct Answer: Option B

Explanation:
CI = P × 0.1664 = 665.60 ⇒ P = 665.60 / 0.1664 = 4000.

This question belongs to: Maths Compound Interest

Question #2

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The compound interest on a certain sum for 2 years at 12% per annum is Rs. 1272. Find the principal sum.

A. Rs. 5200

B. Rs. 5400

C. Rs. 5000

D. Rs. 4800

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Correct Answer: Option C

Explanation:
Effective rate of compound interest for 2 years at 12% = 12 + 12 + (1212)/100 = 25.44%. Given 25.44% of P = 1272 => P = 1272 / 0.2544 = Rs. 5000.

This question belongs to: Maths Compound Interest

Question #3

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Find the compound interest on Rs. 4500 at 8% per annum for 1 year compounded half-yearly.

A. Rs. 367.20

B. Rs. 360

C. Rs. 380

D. Rs. 374.40

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Correct Answer: Option A

Explanation:
Half-yearly rate 4%, n=2. A = 4500 × (1.04)² = 4500 × 1.0816 = 4867.20, CI = 4867.20 − 4500 = Rs. 367.20.

This question belongs to: Maths Compound Interest

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