At what rate of compound interest will Rs. 625 amount to Rs. 676 in 2 years? MCQ with Answer and Explanation

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At what rate of compound interest will Rs. 625 amount to Rs. 676 in 2 years?

A. 5%

B. 4%

C. 3%

D. 6%

Answer: Option B

Solution (By JKSSB Mock Tests)

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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Practice More Compound Interest Questions

Question #1

The compound interest on Rs. 5500 at 10% per annum for 2 years is:

A. Rs. 1155

B. Rs. 1320

C. Rs. 1210

D. Rs. 1265

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Correct Answer: Option A

Explanation:
A = 5500 × 1.21 = 6655, CI = 6655 − 5500 = Rs. 1155.

This question belongs to: Maths Compound Interest

Question #2

The difference between CI and SI on a sum for 2 years at 12% is Rs. 72. The sum is:

A. Rs. 5500

B. Rs. 5000

C. Rs. 6000

D. Rs. 4500

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Correct Answer: Option B

Explanation:
D = P × (0.12)² = P × 0.0144 = 72 ⇒ P = 5000.

This question belongs to: Maths Compound Interest

Question #3

The compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 441. What would be the simple interest on the same sum at the same rate for the same time?

A. Rs. 420

B. Rs. 410

C. Rs. 435

D. Rs. 430

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Correct Answer: Option A

Explanation:
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Simple interest rate = 10 * 2 = 20%. Given 21% of sum = 441 => 1% of sum = 21. Simple Interest = 20% of sum = 20 * 21 = Rs. 420.

This question belongs to: Maths Compound Interest

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