A sum of money at compound interest becomes Rs. 7396 in 2 years and Rs. 7950.70 in 3 years. Find the sum. MCQ with Answer and Explanation

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A sum of money at compound interest becomes Rs. 7396 in 2 years and Rs. 7950.70 in 3 years. Find the sum.

A. Rs. 6000

B. Rs. 6400

C. Rs. 6250

D. Rs. 6500

Answer: Option B

Solution (By JKSSB Mock Tests)

Rate = (7950.70/7396 - 1)*100 = 7.5%? 7950.70/7396 = 1.075, so 7.5%. P = 7396 / (1.075)² = 7396 / 1.155625 = 6400 exactly. Check: 1.075^2 = 1.155625, 6400*1.155625 = 7396. So answer 6400.

This question belongs to: Maths Compound Interest

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What is the compound interest on Rs. 64000 for 1 year at 5% per annum, compounded half-yearly?

A. Rs. 3200

B. Rs. 3240

C. Rs. 3320

D. Rs. 3280

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Correct Answer: Option B

Explanation:
Half-yearly rate = 5/2 = 2.5%. Time = 2 half-years. Amount = 64000 * (1 + 2.5/100)^2 = 64000 * (41/40)^2 = 64000 * (1681 / 1600) = 40 * 1681 = Rs. 67240. Compound Interest = 67240 - 64000 = Rs. 3240.

This question belongs to: Maths Compound Interest