At what rate percent compound interest will Rs. 5000 amount to Rs. 5618 in 2 years? MCQ with Answer and Explanation

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At what rate percent compound interest will Rs. 5000 amount to Rs. 5618 in 2 years?

A. 6%

B. 8%

C. 5%

D. 7%

Answer: Option A

Solution (By JKSSB Mock Tests)

5000(1+r)² = 5618 ⇒ (1+r)² = 1.1236 = (1.06)² ⇒ r = 6%.

This question belongs to: Maths Compound Interest

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Question #1

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The compound interest on a certain sum of money for 2 years at 8% per annum is Rs. 832. What would be the simple interest on the same sum at the same rate for the same time?

A. Rs. 800

B. Rs. 780

C. Rs. 820

D. Rs. 810

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Correct Answer: Option A

Explanation:
Effective rate of compound interest for 2 years at 8% = 8 + 8 + (88)/100 = 16.64%. Simple interest rate = 8 * 2 = 16%. Given 16.64% of sum = 832 => 1% of sum = 50. Simple Interest = 16% of sum = 16 * 50 = Rs. 800.

This question belongs to: Maths Compound Interest