If Rs. 5000 becomes Rs. 5832 in 2 years at compound interest, the rate is: MCQ with Answer and Explanation

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If Rs. 5000 becomes Rs. 5832 in 2 years at compound interest, the rate is:

A. 8%

B. 6%

C. 7%

D. 9%

Answer: Option A

Solution (By JKSSB Mock Tests)

5000(1+r)² = 5832 ⇒ (1+r)² = 1.1664 = (1.08)² ⇒ r = 8%.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1

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A sum of money at compound interest doubles in 4 years. In how many years will it become 8 times?

A. 16 years

B. 20 years

C. 12 years

D. 10 years

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Correct Answer: Option C

Explanation:
2 times in 4 years, 8 = 2³ ⇒ 4 × 3 = 12 years.

This question belongs to: Maths Compound Interest

Question #2

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A sum of money at compound interest doubles in 8 years. In how many years will it become 16 times?

A. 48 years

B. 40 years

C. 32 years

D. 24 years

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Correct Answer: Option C

Explanation:
Doubles in 8 years; 16 = 2⁴, so time = 8 × 4 = 32 years.

This question belongs to: Maths Compound Interest

Question #3

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The value of a machine depreciates at the rate of 10% per annum. If its present value is Rs. 162000, what was its value 2 years ago?

A. Rs. 190000

B. Rs. 210000

C. Rs. 200000

D. Rs. 220000

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Correct Answer: Option C

Explanation:
Value 2 years ago = 162000 / (1 - 10/100)^2 = 162000 / (0.9)^2 = 162000 / 0.81 = Rs. 200000.

This question belongs to: Maths Compound Interest

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