If a sum of Rs. 8000 becomes Rs. 9261 in 3 years at compound interest compounded annually, find the rate of interest per annum. MCQ with Answer and Explanation

Question

If a sum of Rs. 8000 becomes Rs. 9261 in 3 years at compound interest compounded annually, find the rate of interest per annum.

A. 6%

B. 8%

C. 5%

D. 4%

Answer: Option C

Solution (By JKSSB Mock Tests)

Amount/Principal = 9261 / 8000 = (21 / 20)^3. Therefore, (1 + R/100)^3 = (21/20)^3 => 1 + R/100 = 21/20 => R/100 = 1/20 => R = 5%.

This question belongs to: Maths Compound Interest

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Question #1

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What is the compound interest on Rs. 10000 for 1 year at 20% per annum, compounded half-yearly?

A. Rs. 2200

B. Rs. 2000

C. Rs. 2100

D. Rs. 2300

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Correct Answer: Option C

Explanation:
Half-yearly rate = 20/2 = 10%. Time = 2 half-years. Amount = 10000 * (1 + 10/100)^2 = 10000 * 1.21 = Rs. 12100. Compound Interest = 12100 - 10000 = Rs. 2100.

This question belongs to: Maths Compound Interest

Question #2

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A sum of money becomes Rs. 11025 in 2 years at 5% compound interest. The sum is:

A. Rs. 10500

B. Rs. 10000

C. Rs. 11000

D. Rs. 9500

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Correct Answer: Option B

Explanation:
P = 11025 / (1.05)² = 11025 / 1.1025 = 10000.

This question belongs to: Maths Compound Interest

Question #3

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A sum of money at compound interest becomes 9 times in 2 years. In how many years will it become 81 times?

A. 3 years

B. 5 years

C. 4 years

D. 6 years

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Correct Answer: Option C

Explanation:
81 = 9², so 2 × 2 = 4 years.

This question belongs to: Maths Compound Interest

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