In how many years will a sum of Rs. 1600 amount to Rs. 1852.20 at 5% compound interest? MCQ with Answer and Explanation

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In how many years will a sum of Rs. 1600 amount to Rs. 1852.20 at 5% compound interest?

A. 2.5 years

B. 3.5 years

C. 3 years

D. 2 years

Answer: Option C

Solution (By JKSSB Mock Tests)

1600(1.05)^t = 1852.20 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

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Question #1

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At compound interest, a sum becomes 1.21 times in 2 years. The rate of interest per annum is:

A. 9%

B. 12%

C. 10%

D. 11%

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Correct Answer: Option C

Explanation:
(1 + r)² = 1.21 ⇒ 1 + r = 1.1 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

Question #2

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The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs. 620. Find the sum.

A. Rs. 18000

B. Rs. 20000

C. Rs. 22000

D. Rs. 24000

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Correct Answer: Option B

Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 620 = P * (10/100)^2 * (3 + 10/100) => 620 = P * (1/100) * (3.1) => 620 = P * 0.031 => P = 620 / 0.031 = Rs. 20000.

This question belongs to: Maths Compound Interest

Question #3

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The compound interest on Rs. 12500 at 8% per annum for 1 year compounded half-yearly is:

A. Rs. 1040

B. Rs. 1060

C. Rs. 1020

D. Rs. 1000

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Correct Answer: Option C

Explanation:
Half-yearly rate = 4%, n=2. A = 12500 × (1.04)² = 12500 × 1.0816 = 13520, CI = 13520 − 12500 = Rs. 1020.

This question belongs to: Maths Compound Interest

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