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. 96

B. Rs. 100

C. Rs. 98

D. Rs. 102

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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The compound interest on a certain sum for 2 years at 12% per annum is Rs. 1272. Find the principal sum.

A. Rs. 4800

B. Rs. 5200

C. Rs. 5000

D. Rs. 5400

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Correct Answer: Option C

Explanation:
Effective rate of compound interest for 2 years at 12% = 12 + 12 + (1212)/100 = 25.44%. Given 25.44% of P = 1272 => P = 1272 / 0.2544 = Rs. 5000.

This question belongs to: Maths Compound Interest

Question #2

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Find the compound interest on Rs. 8000 for 1 year at 10% per annum, compounded quarterly.

A. Rs. 831.25

B. Rs. 810.20

C. Rs. 824.30

D. Rs. 830.50

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Correct Answer: Option A

Explanation:
Quarterly rate = 10/4 = 2.5%. Time = 1 year = 4 quarters. Amount = 8000 * (1 + 2.5/100)^4 = 8000 * (41/40)^4 = 8000 * (2825761 / 2560000) = 2825761 / 320 = Rs. 8830.50. (Let's check 8000 * (1.025)^4 = 8000 * 1.10381289 = Rs. 8830.50. CI = Rs. 830.50. Correct option is C).

This question belongs to: Maths Compound Interest