At what rate percent per annum will Rs. 12500 amount to Rs. 14580 in 2 years, compound interest compounded annually? MCQ with Answer and Explanation

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At what rate percent per annum will Rs. 12500 amount to Rs. 14580 in 2 years, compound interest compounded annually?

A. 10%

B. 8%

C. 12%

D. 6%

Answer: Option B

Solution (By JKSSB Mock Tests)

Amount/Principal = 14580 / 12500 = 1458 / 1250 = 729 / 625 = (27 / 25)^2 = (1.08)^2. Therefore, 1 + R/100 = 1.08 => R = 8%.

This question belongs to: Maths Compound Interest

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Question #1

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The difference between compound interest and simple interest on Rs. 12500 for 2 years is Rs. 20. Find the rate of interest per annum.

A. 6%

B. 5%

C. 4%

D. 3%

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Correct Answer: Option C

Explanation:
Difference for 2 years = P * (R/100)^2 => 20 = 12500 * (R/100)^2 => 20 = 12500 * R^2 / 10000 => 20 = 1.25 * R^2 => R^2 = 20 / 1.25 = 16 => R = 4%.

This question belongs to: Maths Compound Interest

Question #2

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At what rate percent compound interest will Rs. 1600 amount to Rs. 1852.20 in 3 years?

A. 6%

B. 4%

C. 7%

D. 5%

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Correct Answer: Option D

Explanation:
1600(1+r)³ = 1852.20 ⇒ (1+r)³ = 1.157625 = (1.05)³ ⇒ r = 5%.

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Question #3

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A sum of money at compound interest becomes Rs. 8820 in 2 years and Rs. 9261 in 3 years. Find the rate.

A. 5%

B. 6%

C. 3%

D. 4%

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Correct Answer: Option A

Explanation:
Rate = (9261/8820 − 1) × 100 = (1.05 − 1)×100 = 5%.

This question belongs to: Maths Compound Interest

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