Compound Interest MCQ Quiz - Objective Question with Answer for Compound Interest - Download Free PDF
Last updated on May 31, 2025
Latest Compound Interest MCQ Objective Questions
Compound Interest Question 1:
At 20% per annum rate, an amount is doubled in approximately in ______ years at compound interest.
Answer (Detailed Solution Below)
Compound Interest Question 1 Detailed Solution
Given:
Rate (r) = 20% per annum
Amount becomes double ⇒ A = 2P
Formula used:
A = P(1 + r/100)t
Calculation:
⇒ 2P = P(1 + 20/100)t
⇒ 2 = (1.2)t
Now, take logarithm both sides:
⇒ log(2) = t × log(1.2)
⇒ t = log(2) ÷ log(1.2)
⇒ t = 0.3010 ÷ 0.0792
⇒ t ≈ 3.8 years
∴ The amount is doubled in approximately 4 years.
Top Compound Interest MCQ Objective Questions
At 20% per annum rate, an amount is doubled in approximately in ______ years at compound interest.
Answer (Detailed Solution Below)
Compound Interest Question 2 Detailed Solution
Download Solution PDFGiven:
Rate (r) = 20% per annum
Amount becomes double ⇒ A = 2P
Formula used:
A = P(1 + r/100)t
Calculation:
⇒ 2P = P(1 + 20/100)t
⇒ 2 = (1.2)t
Now, take logarithm both sides:
⇒ log(2) = t × log(1.2)
⇒ t = log(2) ÷ log(1.2)
⇒ t = 0.3010 ÷ 0.0792
⇒ t ≈ 3.8 years
∴ The amount is doubled in approximately 4 years.
Compound Interest Question 3:
At 20% per annum rate, an amount is doubled in approximately in ______ years at compound interest.
Answer (Detailed Solution Below)
Compound Interest Question 3 Detailed Solution
Given:
Rate (r) = 20% per annum
Amount becomes double ⇒ A = 2P
Formula used:
A = P(1 + r/100)t
Calculation:
⇒ 2P = P(1 + 20/100)t
⇒ 2 = (1.2)t
Now, take logarithm both sides:
⇒ log(2) = t × log(1.2)
⇒ t = log(2) ÷ log(1.2)
⇒ t = 0.3010 ÷ 0.0792
⇒ t ≈ 3.8 years
∴ The amount is doubled in approximately 4 years.