At what rate percent compound interest will Rs. 1000 become Rs. 1728 in 3 years? MCQ with Answer and Explanation

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At what rate percent compound interest will Rs. 1000 become Rs. 1728 in 3 years?

A. 20%

B. 15%

C. 18%

D. 25%

Answer: Option A

Solution (By JKSSB Mock Tests)

1000(1+r)³ = 1728 ⇒ (1+r)³ = 1.728 = (1.2)³ ⇒ r = 20%.

This question belongs to: Maths Compound Interest

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Question #1

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The compound interest on a certain sum for 2 years at 5% per annum is Rs. 246. Find the principal sum.

A. Rs. 2200

B. Rs. 2600

C. Rs. 2500

D. Rs. 2400

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Correct Answer: Option D

Explanation:
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Given 10.25% of P = 246 => P = 246 / 0.1025 = Rs. 2400.

This question belongs to: Maths Compound Interest

Question #2

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The effective annual rate for 7% per annum compounded half-yearly is:

A. 7.25%

B. 7.20%

C. 7.12%

D. 7.10%

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Correct Answer: Option C

Explanation:
Half-yearly rate 3.5%, (1.035)² = 1.071225, effective = 7.1225% ≈ 7.12%.

This question belongs to: Maths Compound Interest

Question #3

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A sum of money placed at compound interest becomes double of itself in 4 years. In how many years will it become 32 times of itself?

A. 20 years

B. 24 years

C. 16 years

D. 28 years

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Correct Answer: Option A

Explanation:
The sum becomes 2^1 times in 4 years. It will become 32 (2^5) times in 5 * 4 = 20 years.

This question belongs to: Maths Compound Interest

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