At what rate percent per annum will Rs. 20000 amount to Rs. 23328 in 2 years, compound interest compounded annually? MCQ with Answer and Explanation

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At what rate percent per annum will Rs. 20000 amount to Rs. 23328 in 2 years, compound interest compounded annually?

A. 8%

B. 10%

C. 6%

D. 12%

Answer: Option A

Solution (By JKSSB Mock Tests)

Amount/Principal = 23328 / 20000 = 11664 / 10000 = (108 / 100)^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 effective rate of interest for 10% per annum compounded half-yearly is:

A. 10.10%

B. 10.50%

C. 10.25%

D. 10.75%

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Correct Answer: Option C

Explanation:
Effective rate = (1.05)² − 1 = 1.1025 − 1 = 0.1025 = 10.25%.

This question belongs to: Maths Compound Interest

Question #2

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Find the compound interest on Rs. 31250 for 3 years at 8% per annum, compounded annually.

A. Rs. 7500

B. Rs. 8000

C. Rs. 7824

D. Rs. 8076

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Correct Answer: Option C

Explanation:
Amount = 31250 * (1 + 8/100)^3 = 31250 * (27/25)^3 = 31250 * (19683 / 15625) = 2 * 19683 = Rs. 39366. Compound Interest = 39366 - 31250 = Rs. 8076. Correct option is D.

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Question #3

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In how many years will Rs. 2000 amount to Rs. 2205 at 5% per annum compound interest?

A. 2 years

B. 1.5 years

C. 2.5 years

D. 3 years

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Correct Answer: Option A

Explanation:
2000(1.05)^t = 2205 ⇒ (1.05)^t = 1.1025 = (1.05)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

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