At what rate of compound interest will Rs. 2000 amount to Rs. 2205 in 2 years? MCQ with Answer and Explanation

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At what rate of compound interest will Rs. 2000 amount to Rs. 2205 in 2 years?

A. 5%

B. 6%

C. 4%

D. 7%

Answer: Option A

Solution (By JKSSB Mock Tests)

2000(1+r)² = 2205 ⇒ (1+r)² = 1.1025 = (1.05)² ⇒ r = 5%.

This question belongs to: Maths Compound Interest

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Question #1

At what rate percent compound interest will Rs. 20000 amount to Rs. 22050 in 2 years?

A. 6%

B. 5%

C. 7%

D. 4%

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Correct Answer: Option B

Explanation:
20000(1+r)² = 22050 ⇒ (1+r)² = 1.1025 = (1.05)² ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #2

Find the compound interest on Rs. 50000 for 1 year at 8% per annum, compounded quarterly.

A. Rs. 4310.20

B. Rs. 4200.00

C. Rs. 4121.61

D. Rs. 4000.00

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Correct Answer: Option C

Explanation:
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 50000 * (1 + 2/100)^4 = 50000 * (1.02)^4 = 50000 * 1.08243216 = Rs. 54121.61. Compound Interest = 54121.61 - 50000 = Rs. 4121.61.

This question belongs to: Maths Compound Interest

Question #3

A sum of money at compound interest becomes 2.25 times in 2 years. In how many years will it become 5.0625 times?

A. 6 years

B. 3 years

C. 5 years

D. 4 years

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Correct Answer: Option D

Explanation:
2.25 = (1.5)², so rate 50%. 5.0625 = 2.25², so 4 years. Or 2.25 times in 2 years, 5.0625 = (2.25)², so time 2×2=4.

This question belongs to: Maths Compound Interest

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