The compound interest on a certain sum for 2 years at 5% per annum is Rs. 1230. Find the principal sum. MCQ with Answer and Explanation

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The compound interest on a certain sum for 2 years at 5% per annum is Rs. 1230. Find the principal sum.

A. Rs. 12500

B. Rs. 11500

C. Rs. 12000

D. Rs. 13000

Answer: Option C

Solution (By JKSSB Mock Tests)

Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Given 10.25% of P = 1230 => P = 1230 / 0.1025 = Rs. 12000.

This question belongs to: Maths Compound Interest

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Question #1

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The difference between compound interest and simple interest on Rs. 12500 for 2 years is Rs. 20. Find the rate of interest per annum.

A. 6%

B. 4%

C. 5%

D. 3%

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Correct Answer: Option B

Explanation:
Difference for 2 years = P * (R/100)^2 => 20 = 12500 * (R/100)^2 => 20 = 12500 * R^2 / 10000 => 20 = 1.25 * R^2 => R^2 = 20 / 1.25 = 16 => R = 4%.

This question belongs to: Maths Compound Interest

Question #2

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The compound interest on Rs. 5500 at 10% per annum for 2 years is:

A. Rs. 1155

B. Rs. 1265

C. Rs. 1320

D. Rs. 1210

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Correct Answer: Option A

Explanation:
A = 5500 × 1.21 = 6655, CI = 6655 − 5500 = Rs. 1155.

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Question #3

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Find the compound interest on Rs. 7200 at 5% per annum for 2 years.

A. Rs. 738

B. Rs. 744

C. Rs. 740

D. Rs. 742

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Correct Answer: Option A

Explanation:
A = 7200 × (1.05)² = 7200 × 1.1025 = 7938, CI = 7938 − 7200 = Rs. 738.

This question belongs to: Maths Compound Interest

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