In how many years will Rs. 2500 amount to Rs. 2756.25 at 5% per annum compound interest? MCQ with Answer and Explanation

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In how many years will Rs. 2500 amount to Rs. 2756.25 at 5% per annum compound interest?

A. 2 years

B. 3 years

C. 1.5 years

D. 2.5 years

Answer: Option A

Solution (By JKSSB Mock Tests)

2500(1.05)^t = 2756.25 ⇒ (1.05)^t = 1.1025 ⇒ t = 2.

This question belongs to: Maths Compound Interest

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Question #1

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In how many years will Rs. 1500 amount to Rs. 1815 at 10% per annum compound interest?

A. 2.5 years

B. 2 years

C. 3 years

D. 1.5 years

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Correct Answer: Option B

Explanation:
1500(1.1)^t = 1815 ⇒ (1.1)^t = 1.21 ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #2

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The effective rate of interest for 4% per annum compounded half-yearly is:

A. 4.16%

B. 4.04%

C. 4.08%

D. 4.20%

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Correct Answer: Option B

Explanation:
Effective = (1.02)² − 1 = 1.0404 − 1 = 4.04%.

This question belongs to: Maths Compound Interest

Question #3

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The simple interest on a sum for 2 years at 9% is Rs. 540. The compound interest on the same sum for 2 years at 9% is:

A. Rs. 570.00

B. Rs. 564.30

C. Rs. 561.60

D. Rs. 567.00

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Correct Answer: Option B

Explanation:
P = 54000/(9×2) = 3000. CI = 3000[(1.09)² − 1] = 3000 × 0.1881 = 564.30.

This question belongs to: Maths Compound Interest

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