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: MCQ with Answer and Explanation

Question

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. 416

B. Rs. 440

C. Rs. 424

D. Rs. 432

Answer: Option A

Solution (By JKSSB Mock Tests)

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

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Question #1

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In how many years will Rs. 1000 amount to Rs. 1157.625 at 5% per annum compound interest?

A. 3 years

B. 3.5 years

C. 2 years

D. 2.5 years

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Correct Answer: Option A

Explanation:
1000(1.05)^t = 1157.625 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #2

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If the simple interest on a sum of money for 3 years at 5% per annum is Rs. 1200, find the compound interest on the same sum at the same rate for the same period.

A. Rs. 1280.00

B. Rs. 1240.50

C. Rs. 1261.00

D. Rs. 1301.50

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Correct Answer: Option C

Explanation:
Simple Interest for 1 year = 1200 / 3 = Rs. 400. Principal P = (1200 * 100) / (5 * 3) = Rs. 8000. Amount with compound interest = 8000 * (1 + 5/100)^3 = 8000 * 1.157625 = Rs. 9261. Compound Interest = 9261 - 8000 = Rs. 1261.

This question belongs to: Maths Compound Interest