A sum of money at compound interest amounts to Rs. 2420 in 2 years and to Rs. 2662 in 3 years. Find the rate of interest. MCQ with Answer and Explanation

Question

A sum of money at compound interest amounts to Rs. 2420 in 2 years and to Rs. 2662 in 3 years. Find the rate of interest.

A. 10%

B. 15%

C. 8%

D. 12%

Answer: Option A

Solution (By JKSSB Mock Tests)

Amount in 3 years / Amount in 2 years = 2662/2420 = 1.1 = 1 + R/100 ⇒ R = 10%.

This question belongs to: Maths Compound Interest

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Question #1

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If the compound interest on a sum for 2 years at 5% is Rs. 307.50, the simple interest on the same sum for 2 years at 5% is:

A. Rs. 310

B. Rs. 280

C. Rs. 300

D. Rs. 290

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Correct Answer: Option C

Explanation:
CI = P × 0.1025 = 307.50 ⇒ P = 3000. SI = 3000 × 5 × 2 / 100 = Rs. 300.

This question belongs to: Maths Compound Interest

Question #2

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Find the compound interest on Rs. 7200 at 5% per annum for 2 years.

A. Rs. 738

B. Rs. 740

C. Rs. 742

D. Rs. 744

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Correct Answer: Option A

Explanation:
A = 7200 × (1.05)² = 7200 × 1.1025 = 7938, CI = 7938 − 7200 = Rs. 738.

This question belongs to: Maths Compound Interest

Question #3

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The simple interest on a sum for 2 years at 10% is Rs. 400. The compound interest on the same sum for 2 years at 10% is:

A. Rs. 400

B. Rs. 430

C. Rs. 410

D. Rs. 420

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Correct Answer: Option D

Explanation:
P = 40000/(10×2) = 2000. CI = 2000[(1.1)² − 1] = 2000 × 0.21 = Rs. 420.

This question belongs to: Maths Compound Interest

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