What is the compound interest on Rs. 20000 for 2 years if the rate of interest is 5% for the first year and 10% for the second year? MCQ with Answer and Explanation

Question

What is the compound interest on Rs. 20000 for 2 years if the rate of interest is 5% for the first year and 10% for the second year?

A. Rs. 3100

B. Rs. 3200

C. Rs. 3300

D. Rs. 3000

Answer: Option A

Solution (By JKSSB Mock Tests)

Amount = 20000 * (1 + 5/100) * (1 + 10/100) = 20000 * 1.05 * 1.10 = 20000 * 1.155 = Rs. 22100. Compound Interest = 22100 - 20000 = Rs. 2100.

This question belongs to: Maths Compound Interest

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Question #1

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A sum of money at compound interest becomes 3 times in 5 years. In how many years will it become 9 times?

A. 8 years

B. 15 years

C. 12 years

D. 10 years

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Correct Answer: Option D

Explanation:
3 times in 5 years; 9 = 3² ⇒ 5 × 2 = 10 years.

This question belongs to: Maths Compound Interest

Question #2

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The effective annual rate for 10% per annum compounded quarterly is:

A. 10.47%

B. 10.38%

C. 10.50%

D. 10.25%

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Correct Answer: Option B

Explanation:
Quarterly rate 2.5%, (1.025)⁴ = 1.10381289, effective ≈ 10.38%.

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Question #3

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The compound interest on Rs. 1900 at 10% per annum for 2 years is:

A. Rs. 437

B. Rs. 418

C. Rs. 380

D. Rs. 399

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Correct Answer: Option D

Explanation:
A = 1900 × 1.21 = 2299, CI = 2299 − 1900 = Rs. 399.

This question belongs to: Maths Compound Interest

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