At what rate percent compound interest will a sum of Rs. 4000 become Rs. 5324 in 3 years? MCQ with Answer and Explanation

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At what rate percent compound interest will a sum of Rs. 4000 become Rs. 5324 in 3 years?

A. 15%

B. 12%

C. 10%

D. 8%

Answer: Option C

Solution (By JKSSB Mock Tests)

4000(1+r)³ = 5324 ⇒ (1+r)³ = 1.331 = (1.1)³ ⇒ r = 10%.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1

The difference between CI and SI on Rs. 9600 for 2 years at 5% is:

A. Rs. 22

B. Rs. 26

C. Rs. 20

D. Rs. 24

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Correct Answer: Option D

Explanation:
D = 9600 × 0.0025 = Rs. 24.

This question belongs to: Maths Compound Interest

Question #2

A sum of money at compound interest becomes 4 times in 3 years. In how many years will it become 16 times?

A. 6 years

B. 5 years

C. 9 years

D. 4 years

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Correct Answer: Option A

Explanation:
4² = 16, so 3 × 2 = 6 years.

This question belongs to: Maths Compound Interest

Question #3

The compound interest on a certain sum for 2 years at 10% per annum is Rs. 210. Find the principal sum.

A. Rs. 1050

B. Rs. 1100

C. Rs. 950

D. Rs. 1000

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Correct Answer: Option D

Explanation:
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Given 21% of P = 210 => P = 210 / 0.21 = Rs. 1000.

This question belongs to: Maths Compound Interest

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