The compound interest on a certain sum for 2 years at 4% per annum is Rs. 1632. Find the principal sum. MCQ with Answer and Explanation

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The compound interest on a certain sum for 2 years at 4% per annum is Rs. 1632. Find the principal sum.

A. Rs. 24000

B. Rs. 20000

C. Rs. 22000

D. Rs. 18000

Answer: Option B

Solution (By JKSSB Mock Tests)

Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Given 8.16% of P = 1632 => P = 1632 / 0.0816 = Rs. 20000.

This question belongs to: Maths Compound Interest

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Question #1

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The compound interest on a sum for 2 years at 4% is Rs. 408. The sum is:

A. Rs. 4800

B. Rs. 5000

C. Rs. 5400

D. Rs. 5200

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Correct Answer: Option B

Explanation:
CI = P[(1.04)² − 1] = P × 0.0816 = 408 ⇒ P = 5000.

This question belongs to: Maths Compound Interest

Question #2

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In how many years will Rs. 5000 become Rs. 5618 at 6% compound interest?

A. 2.5 years

B. 3 years

C. 1.5 years

D. 2 years

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Correct Answer: Option D

Explanation:
5000(1.06)^t = 5618 ⇒ (1.06)^t = 1.1236 = (1.06)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #3

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A sum of money at compound interest amounts to Rs. 6655 in 3 years and to Rs. 7320.50 in 4 years. Find the rate of interest.

A. 11%

B. 9%

C. 8%

D. 10%

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Correct Answer: Option D

Explanation:
Rate = (7320.50/6655 − 1) × 100 = (1.1 − 1) × 100 = 10%.

This question belongs to: Maths Compound Interest

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