If the compound interest on a sum for 2 years at 4% per annum is Rs. 102, the simple interest for the same period and rate is: MCQ with Answer and Explanation

Question

If the compound interest on a sum for 2 years at 4% per annum is Rs. 102, the simple interest for the same period and rate is:

A. Rs. 102

B. Rs. 100

C. Rs. 96

D. Rs. 98

Answer: Option B

Solution (By JKSSB Mock Tests)

CI = P[(1.04)² − 1] = P × 0.0816 = 102 ⇒ P = 1250. SI = 1250 × 4 × 2/100 = 100.

This question belongs to: Maths Compound Interest

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Question #1

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Find the compound interest on Rs. 19600 at 10% per annum for 2 years.

A. Rs. 4508

B. Rs. 4312

C. Rs. 4116

D. Rs. 3920

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Correct Answer: Option C

Explanation:
A = 19600 × 1.21 = 23716, CI = 23716 − 19600 = Rs. 4116.

This question belongs to: Maths Compound Interest

Question #2

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The simple interest on a sum for 3 years at 5% is Rs. 375. The compound interest on the same sum for 2 years at 5% is:

A. Rs. 262.50

B. Rs. 256.25

C. Rs. 250

D. Rs. 260

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Correct Answer: Option B

Explanation:
P = 37500/(5×3) = 2500. CI = 2500[(1.05)² − 1] = 2500 × 0.1025 = Rs. 256.25.

This question belongs to: Maths Compound Interest

Question #3

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The effective annual rate of interest for 8% per annum compounded quarterly is:

A. 8.16%

B. 8.42%

C. 8.30%

D. 8.24%

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Correct Answer: Option D

Explanation:
Quarterly rate 2%, (1.02)⁴ = 1.08243216, effective = 8.2432% ≈ 8.24%.

This question belongs to: Maths Compound Interest

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