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. 440

B. Rs. 424

C. Rs. 432

D. Rs. 416

Answer: Option D

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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A sum of money becomes Rs. 24200 in 2 years and Rs. 26620 in 3 years at compound interest compounded annually. Find the sum.

A. Rs. 24000

B. Rs. 18000

C. Rs. 22000

D. Rs. 20000

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Correct Answer: Option D

Explanation:
Rate of interest = ((26620 - 24200) / 24200) * 100 = (2420 / 24200) * 100 = 10%. Principal P = 24200 / (1 + 10/100)^2 = 24200 / 1.21 = Rs. 20000.

This question belongs to: Maths Compound Interest

Question #2

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What is the principal if the amount after 3 years at 5% compound interest is Rs. 2315.25?

A. Rs. 2200

B. Rs. 2000

C. Rs. 1900

D. Rs. 2100

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Correct Answer: Option B

Explanation:
P = 2315.25 / (1.05)³ = 2315.25 / 1.157625 = 2000.

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Question #3

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At what rate percent compound interest will Rs. 1600 amount to Rs. 1852.20 in 3 years?

A. 7%

B. 4%

C. 5%

D. 6%

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Correct Answer: Option C

Explanation:
1600(1+r)³ = 1852.20 ⇒ (1+r)³ = 1.157625 = (1.05)³ ⇒ r = 5%.

This question belongs to: Maths Compound Interest

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