Question : A sum of money becomes 1.331 times in 3 years as compound interest. The rate of interest is:
Option 1: 8%
Option 2: 7.5%
Option 3: 10%
Option 4: 50%
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Correct Answer: 10%
Solution : Assuming the principal amount to be Rs. 1000. Then the amount will be Rs. 1331. When compounded annually, $A= P(1+\frac{R}{100})^{T}$ Where A is the total amount, $P$ is the principal amount, $R$ is the rate of interest per annum, and $T$ is the time in years. So, $1331=1000(1 + \frac{R}{100})^3$ $⇒\frac{1331}{1000}=(1 + \frac{R}{100})^3$ $⇒(\frac{11}{10})^3=(1 + \frac{R}{100})^3$ $⇒\frac{11}{10}=1 + \frac{R}{100}$ $⇒\frac{R}{100}=\frac{1}{10}$ $⇒R=10$% Hence, the correct answer is 10%.
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Question : On a certain sum of money, the simple interest for 2 years is INR 150 at the rate of 10% per annum. What is the difference between compound interest and simple interest for 2 years if, in the case of compound interest, interest is compounded annually at the rate of 10% per annum?
Option 1: INR 5
Option 2: INR 10
Option 3: INR 7.5
Option 4: INR 12.5
Question : If at compound interest a certain sum becomes 2 times itself in 5 years, then in how many years will it become 8 times itself?
Option 1: 18 years
Option 2: 12 years
Option 3: 20 years
Option 4: 15 years
Question : The simple interest received on a sum at the rate of 8 percent per annum is $\frac{2}{5}$ of the sum. What is the period?
Option 1: 6 years
Option 2: 5 years
Option 3: 4 years
Option 4: 7.5 years
Question : At what rate of compound interest (compounding annually) per annum will a sum of Rs. 250000 becomes Rs. 275625 in 2 years?
Option 1: 8% per annum
Option 2: 3% per annum
Option 3: 10% per annum
Option 4: 5% per annum
Question : What is that rate of simple interest at which a sum of money becomes three times itself in 36 years?
Option 1: 7.28%
Option 2: 6.86%
Option 3: 5.55%
Option 4: 6.28%
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