The compound interest on a certain sum for 2 years at 10% per annum is Rs. 630. Find the principal sum. MCQ with Answer and Explanation

Question
The compound interest on a certain sum for 2 years at 10% per annum is Rs. 630. Find the principal sum.
A. Rs. 3200
B. Rs. 3000
C. Rs. 2800
D. Rs. 3400
Answer: Option B
Solution (By JKSSB Mock Tests)
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Given 21% of P = 630 => P = 630 / 0.21 = Rs. 3000.
This question belongs to: Maths Compound Interest
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Question #1
A sum of money amounts to Rs. 11025 in 2 years and Rs. 11576.25 in 3 years at compound interest. Find the sum.
A. Rs. 9500
B. Rs. 9000
C. Rs. 10000
D. Rs. 10500
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Correct Answer: Option C

Explanation:
Rate = (11576.25/11025 − 1) × 100 = 5%. P = 11025 / (1.05)² = 11025 / 1.1025 = 10000.
This question belongs to: Maths Compound Interest
Question #2
In how many years will Rs. 8000 amount to Rs. 8820 at 5% per annum compound interest?
A. 3 years
B. 1 year
C. 4 years
D. 2 years
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Correct Answer: Option D

Explanation:
8000(1.05)^t = 8820 ⇒ (1.05)^t = 1.1025 ⇒ t = 2.
This question belongs to: Maths Compound Interest
Question #3
Find the compound interest on Rs. 30000 for 1 year at 8% per annum, compounded quarterly.
A. Rs. 2400.00
B. Rs. 2510.00
C. Rs. 2472.96
D. Rs. 2550.50
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Correct Answer: Option C

Explanation:
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 30000 * (1 + 2/100)^4 = 30000 * (1.02)^4 = 30000 * 1.08243216 = Rs. 32472.96. Compound Interest = 32472.96 - 30000 = Rs. 2472.96.
This question belongs to: Maths Compound Interest
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