The compound interest on a certain sum for 2 years at 4% per annum is Rs. 408. 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. 408. Find the principal sum.

A. Rs. 4800

B. Rs. 5000

C. Rs. 5400

D. Rs. 5200

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 = 408 => P = 408 / 0.0816 = Rs. 5000.

This question belongs to: Maths Compound Interest

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Question #1

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A sum of money placed at compound interest becomes double of itself in 7 years. In how many years will it become 16 times of itself?

A. 28 years

B. 21 years

C. 35 years

D. 42 years

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Correct Answer: Option A

Explanation:
The sum becomes 2^1 times in 7 years. It will become 16 (2^4) times in 4 * 7 = 28 years.

This question belongs to: Maths Compound Interest

Question #2

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Find the amount on Rs. 12500 at 8% per annum compound interest for 2 years.

A. Rs. 14640

B. Rs. 14580

C. Rs. 14620

D. Rs. 14600

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Correct Answer: Option B

Explanation:
A = 12500 × (1.08)² = 12500 × 1.1664 = 14580.

This question belongs to: Maths Compound Interest

Question #3

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The difference between simple interest and compound interest on a certain sum of money for 3 years at 5% per annum is Rs. 244. Find the sum.

A. Rs. 36000

B. Rs. 32000

C. Rs. 34000

D. Rs. 30000

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Correct Answer: Option B

Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 244 = P * (5/100)^2 * (3 + 5/100) => 244 = P * (1/400) * (3.05) => P = (244 * 400) / 3.05 = 97600 / 3.05 = Rs. 32000.

This question belongs to: Maths Compound Interest

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