In how many years will Rs. 4000 amount to Rs. 4630.50 at 5% per annum compound interest? MCQ with Answer and Explanation

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In how many years will Rs. 4000 amount to Rs. 4630.50 at 5% per annum compound interest?

A. 3.5 years

B. 3 years

C. 2.5 years

D. 2 years

Answer: Option B

Solution (By JKSSB Mock Tests)

4000(1.05)^t = 4630.50 ⇒ (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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The difference between compound interest (compounded annually) and simple interest on a certain sum of money for 3 years at 5% per annum is Rs. 122. Find the sum.

A. Rs. 16000

B. Rs. 18000

C. Rs. 15000

D. Rs. 17000

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Correct Answer: Option A

Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 122 = P * (5/100)^2 * (3 + 5/100) => 122 = P * (1/400) * (3.05) => 122 = P * (3.05 / 400) => P = (122 * 400) / 3.05 = 48800 / 3.05 = Rs. 16000.

This question belongs to: Maths Compound Interest

Question #2

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The effective annual rate for 18% per annum compounded half-yearly is:

A. 19.00%

B. 19.25%

C. 18.81%

D. 18.50%

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Correct Answer: Option C

Explanation:
Half-yearly rate 9%, (1.09)² = 1.1881, effective = 18.81%.

This question belongs to: Maths Compound Interest

Question #3

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Find the compound interest on Rs. 10000 for 1 year at 8% per annum, compounded quarterly.

A. Rs. 800.00

B. Rs. 824.32

C. Rs. 840.00

D. Rs. 850.50

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Correct Answer: Option B

Explanation:
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 10000 * (1 + 2/100)^4 = 10000 * (1.02)^4 = 10000 * 1.082432 = Rs. 10824.32. Compound Interest = 10824.32 - 10000 = Rs. 824.32.

This question belongs to: Maths Compound Interest

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