A sum of money yields a compound interest of Rs. 205 in 2 years at 5% per annum. Find the principal sum. MCQ with Answer and Explanation

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A sum of money yields a compound interest of Rs. 205 in 2 years at 5% per annum. Find the principal sum.

A. Rs. 2000

B. Rs. 2400

C. Rs. 1800

D. Rs. 2200

Answer: Option A

Solution (By JKSSB Mock Tests)

Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Given 10.25% of P = 205 => P = 205 / 0.1025 = Rs. 2000.

This question belongs to: Maths Compound Interest

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Question #1

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The compound interest on Rs. 4300 at 10% per annum for 2 years is:

A. Rs. 946

B. Rs. 989

C. Rs. 903

D. Rs. 860

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Correct Answer: Option C

Explanation:
A = 4300 × 1.21 = 5203, CI = 5203 − 4300 = Rs. 903.

This question belongs to: Maths Compound Interest

Question #2

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If the simple interest on a sum for 2 years at 8% is Rs. 400, the compound interest on the same sum for 2 years at 8% is:

A. Rs. 432

B. Rs. 440

C. Rs. 424

D. Rs. 416

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Correct Answer: Option D

Explanation:
P = SI × 100 / (8×2) = 40000/16 = 2500. CI = 2500[(1.08)² − 1] = 2500 × 0.1664 = Rs. 416.

This question belongs to: Maths Compound Interest

Question #3

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The value of a machine depreciates at the rate of 10% per annum. If its present value is Rs. 162000, what was its value 2 years ago?

A. Rs. 190000

B. Rs. 220000

C. Rs. 210000

D. Rs. 200000

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Correct Answer: Option D

Explanation:
Value 2 years ago = 162000 / (1 - 10/100)^2 = 162000 / (0.9)^2 = 162000 / 0.81 = Rs. 200000.

This question belongs to: Maths Compound Interest

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