# Compound Interest with Explanation

Q1. After how many years will Rs. 1600 become Rs. 2025 at 12.5% per annum compound interest?

 A. 2 years B. 2.5 years C. 3 years D. 4 years

Q2. Ramesh borrowed some money from Suresh at 5% per annum compound interest and paid Rs. 882 each in two annual instalments. What was the sum borrowed?

 A. Rs. 1620 B. Rs. 1680 C. Rs. 1650 D. Rs. 1640

Q3. What sum will become Rs. 9261 at 5% per annum compound interest after 3 years?

 A. Rs. 9000 B. Rs. 8000 C. Rs. 6000 D. Rs. 7000

Q4. At what rate of compound interest will Rs. 20000 becomes Rs. 24200 after 2 years?

 A. 8.5% B. 9% C. 9.5% D. 10%

Q5. The difference between compound interest and simple interest for 2 years at 10% per annum is Rs. 50. Find the sum

 A. Rs. 5300 B. Rs. 4900 C. Rs. 5000 D. Rs. 5200

Q6. The population of a town is 80000. If the population increases annually at the rate of 75 per 1000, find the population of this town after 2 years?

 A. 92450 B. 90000 C. 91253 D. 93684

Q7. The value of a car depreciates by 10% annually. If the present value of the car is Rs. 1,00,000, what will be its value after 2 years?

 A. Rs. 80000 B. Rs. 81000 C. Rs. 84300 D. Rs. 84000