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The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is

  • 4 years
  • 5 years
  • 6 years
  • 7 years

Answer: Option A

Explanation:

As per question we need something like following

P(1+R100)n>2P(1+20100)n>2(65)n>265×65×65×65>2



So answer is 4 years

Similar Questions :

1. Albert invested amount of 8000 in a fixed deposit for 2 years at compound interest rate of 5 % per annum. How much Albert will get on the maturity of the fixed deposit.

  • Rs. 8510
  • Rs. 8620
  • Rs. 8730
  • Rs. 8820

Answer: Option D

Explanation:

=>(8000×(1+5100)2)=>8000×2120×2120=>8820


2. The present worth of Rs.169 due in 2 years at 4% per annum compound interest is

  • Rs 155.25
  • Rs 156.25
  • Rs 157.25
  • Rs 158.25

Answer: Option B

Explanation:

In this type of question we apply formula
Amount=P(1+R100)nAmount=169(1+4100)2Amount=169∗25∗2526∗26Amount=156.25

3. Effective annual rate of interest corresponding to nominal rate of 6% per annum compounded half yearly will be

  • 6.09%
  • 6.10%
  • 6.12%
  • 6.14%

Answer: Option A

Explanation:

Let the amount Rs 100 for 1 year when compounded half yearly, n = 2, Rate = 6/2 = 3%

Amount=100(1+3100)2=106.09



Effective rate = (106.09 - 100)% = 6.09%

4. In what time will Rs.1000 become Rs.1331 at 10% per annum compounded annually

  • 2 Years
  • 3 Years
  • 4 Years
  • 5 Years

Answer: Option B

Explanation:

Principal = Rs.1000;
Amount = Rs.1331;
Rate = Rs.10%p.a.

Let the time be n years then,

1000(1+10100)n=1331(1110)n=13311000(1110)3=13311000


So answer is 3 years

5. Find the compound interest on Rs. 7500 at 4% per annum for 2 years, compounded annually.

  • Rs. 610
  • Rs. 612
  • Rs. 614
  • Rs. 616

Answer: Option B

Explanation:

Amount=[7500×(1+4100)2]=(7500×2625×2625)=8112



So compound interest = (8112 - 7500) = 612

Read more from - Compound Interest Questions Answers
Post a comment

  • nimmi 10 years ago

    Whyu multiplied 6/5four times in Q-9

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