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. 9%

C. 7%

D. 6%

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

In how many years will Rs. 2500 amount to Rs. 3025 at 10% per annum compound interest?

A. 2 years

B. 3 years

C. 1.5 years

D. 2.5 years

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Correct Answer: Option A

Explanation:
2500(1.1)^t = 3025 ⇒ (1.1)^t = 1.21 = (1.1)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #2

A sum of money amounts to Rs. 11025 in 2 years and Rs. 11576.25 in 3 years at compound interest. Find the sum.

A. Rs. 9000

B. Rs. 10500

C. Rs. 9500

D. Rs. 10000

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Correct Answer: Option D

Explanation:
Rate = (11576.25/11025 − 1) × 100 = 5%. P = 11025 / (1.05)² = 11025 / 1.1025 = 10000.

This question belongs to: Maths Compound Interest

Question #3

The difference between simple interest and compound interest on a certain sum of money for 3 years at 20% per annum is Rs. 384. Find the sum.

A. Rs. 2500

B. Rs. 3000

C. Rs. 4000

D. Rs. 3500

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Correct Answer: Option B

Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 384 = P * (20/100)^2 * (3 + 20/100) => 384 = P * (1/25) * (3.2) => 384 = P * 0.128 => P = 384 / 0.128 = Rs. 3000.

This question belongs to: Maths Compound Interest

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