Find the compound interest on Rs. 500 at 10% per annum for 2 years. MCQ with Answer and Explanation

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Find the compound interest on Rs. 500 at 10% per annum for 2 years.

A. Rs. 100

B. Rs. 105

C. Rs. 110

D. Rs. 115

Answer: Option B

Solution (By JKSSB Mock Tests)

A = 500 × 1.21 = 605, CI = 605 − 500 = Rs. 105.

This question belongs to: Maths Compound Interest

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Question #1

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Find the principal that yields a compound interest of Rs. 410 in 2 years at 5% per annum.

A. Rs. 4200

B. Rs. 3800

C. Rs. 4400

D. Rs. 4000

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Correct Answer: Option D

Explanation:
CI = P[(1.05)² − 1] = P × 0.1025 = 410 ⇒ P = 410 / 0.1025 = 4000.

This question belongs to: Maths Compound Interest

Question #2

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What sum of money will amount to Rs. 5290 in 2 years at 15% per annum compound interest compounded annually?

A. Rs. 4000

B. Rs. 4400

C. Rs. 3800

D. Rs. 4200

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Correct Answer: Option A

Explanation:
Amount = P * (1 + 15/100)^2 => 5290 = P * (1.15)^2 => 5290 = P * 1.3225 => P = 5290 / 1.3225 = Rs. 4000.

This question belongs to: Maths Compound Interest

Question #3

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A sum of money invested at compound interest doubles itself in 5 years. In how many years will it become 8 times of itself?

A. 25 years

B. 15 years

C. 10 years

D. 20 years

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Correct Answer: Option B

Explanation:
The sum doubles (2^1) in 5 years. It will become 8 (2^3) times in 3 * 5 = 15 years.

This question belongs to: Maths Compound Interest

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