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

Question

Share Report Error

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

A. Rs. 42

B. Rs. 40

C. Rs. 32

D. Rs. 36

Answer: Option C

Solution (By JKSSB Mock Tests)

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

This question belongs to: Maths Compound Interest

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Compound Interest Questions

Question #1

Share Report

The difference between CI and SI on Rs. 12500 for 2 years at 4% is:

A. Rs. 22

B. Rs. 18

C. Rs. 16

D. Rs. 20

View Answer & Solution Discuss

Get Complete Subject PDF for Maths

Correct Answer: Option D

Explanation:
D = 12500 × 0.0016 = Rs. 20.

This question belongs to: Maths Compound Interest

Question #2

Share Report

In how many years will a sum of Rs. 2000 amount to Rs. 2662 at 10% per annum compound interest?

A. 2 years

B. 5 years

C. 3 years

D. 4 years

View Answer & Solution Discuss

Get Complete Subject PDF for Maths

Correct Answer: Option C

Explanation:
2000 × (1.1)^t = 2662 ⇒ (1.1)^t = 1.331 = (1.1)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #3

Share Report

The compound interest on a sum for 1 year at 8% compounded half-yearly is Rs. 408. The sum is:

A. Rs. 4800

B. Rs. 5000

C. Rs. 5200

D. Rs. 5400

View Answer & Solution Discuss

Get Complete Subject PDF for Maths

Correct Answer: Option B

Explanation:
A = P(1.04)² = P × 1.0816. CI = P × 0.0816 = 408 ⇒ P = 408 / 0.0816 = 5000.

This question belongs to: Maths Compound Interest

Explore All Compound Interest MCQs