A sum of money placed at compound interest amounts to Rs. 1200 in 2 years and Rs. 1320 in 3 years. Find the rate of interest per annum. MCQ with Answer and Explanation

Question

A sum of money placed at compound interest amounts to Rs. 1200 in 2 years and Rs. 1320 in 3 years. Find the rate of interest per annum.

A. 15%

B. 10%

C. 12%

D. 8%

Answer: Option B

Solution (By JKSSB Mock Tests)

Interest earned in the 3rd year = 1320 - 1200 = Rs. 120. Rate of interest = (120 / 1200) * 100 = 10%.

This question belongs to: Maths Compound Interest

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Question #1

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The difference between compound interest and simple interest on a sum for 2 years at 5% per annum is Rs. 25. The sum is:

A. Rs. 10000

B. Rs. 8000

C. Rs. 15000

D. Rs. 12000

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Correct Answer: Option A

Explanation:
Difference = P × (r/100)² ⇒ 25 = P × 0.0025 ⇒ P = 10000.

This question belongs to: Maths Compound Interest

Question #2

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Find the difference between compound interest and simple interest on Rs. 5000 for 2 years at 8% per annum.

A. Rs. 42

B. Rs. 32

C. Rs. 40

D. Rs. 36

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Correct Answer: Option B

Explanation:
Difference for 2 years = P * (R/100)^2 = 5000 * (8/100)^2 = 5000 * (64 / 10000) = Rs. 32.

This question belongs to: Maths Compound Interest

Question #3

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Find the amount on Rs. 13500 at 8% per annum compound interest for 2 years.

A. Rs. 15746.40

B. Rs. 16000

C. Rs. 15800

D. Rs. 15900

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Correct Answer: Option A

Explanation:
A = 13500 × (1.08)² = 13500 × 1.1664 = 15746.40.

This question belongs to: Maths Compound Interest

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