Question : A sum becomes Rs. 7,436 in two years when interest is compounded annually at the rate of 4% per annum. What was the sum?
Option 1: Rs. 7,075
Option 2: Rs. 6,275
Option 3: Rs. 6,575
Option 4: Rs. 6,875
Correct Answer: Rs. 6,875
Solution : Total amount = Rs.7,436 Rate of interest = 4% Time = 2 years $\text{Total Amount}=\text{Principal}×(1+\frac{\text{Rate}}{100})^{\text{Time}}$ ⇒ $7436 = \text{Principal}×(1+\frac{4}{100})^2$ ⇒ $7436 = \text{Principal}×(\frac{26}{25})^2$ ⇒ $\text{Principal} = \frac{7436×25×25}{26×2}$ $\therefore \text{Principal} = 6875$ Hence, the correct answer is Rs. 6,875.
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Question : A sum of money amounts to INR 1,200 in 2 years and becomes INR 1,260 in 3 years at compound interest when interest is compounded annually. What is the rate of compound interest per annum?
Option 1: 5%
Option 2: 3%
Option 3: 4%
Option 4: 6%
Question : A sum becomes Rs. 1,352 in 2 years at 4% per annum compound interest. The sum is:
Option 1: Rs. 1,225
Option 2: Rs. 1,270
Option 3: Rs. 1,245
Option 4: Rs. 1,250
Question : At what percentage rate, compound interest compounded annually for a sum of Rs. 40,000, will amount to Rs. 44,100 in two years?
Option 2: 2%
Option 4: 7.5%
Question : A sum of money becomes double in 3 years at compound interest compounded annually. At the same rate, in how many years will it become four times of itself?
Option 1: 4 years
Option 2: 6 years
Option 3: 6.4 years
Option 4: 7.5 years
Question : A sum of Rs. 800 becomes Rs. 956 in 3 years at a certain rate of simple interest. If the rate of interest is increased by 4%, what amount will the same sum become in 3 years?
Option 1: Rs. 1025
Option 2: Rs. 1042
Option 3: Rs. 1052
Option 4: Rs. 1024
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