The compound interest on a certain sum for 2 years at 5% per annum is Rs. 246. 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. 246. Find the principal sum.

A. Rs. 2400

B. Rs. 2500

C. Rs. 2600

D. Rs. 2200

Answer: Option A

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 = 246 => P = 246 / 0.1025 = Rs. 2400.

This question belongs to: Maths Compound Interest

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Question #1

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The simple interest on a sum for 2 years at 6% is Rs. 360. The compound interest on the same sum for 2 years at 6% is:

A. Rs. 378.00

B. Rs. 375.20

C. Rs. 372.60

D. Rs. 370.80

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Correct Answer: Option C

Explanation:
SI = P × 6 × 2 /100 = 0.12P = 360 ⇒ P = 3000. CI = 3000[(1.06)² − 1] = 3000 × 0.1236 = Rs. 370.80. Wait 3000*0.1236 = 370.80. So answer A. I'll correct: A. I'll check: 1.06^2=1.1236, minus 1 = 0.1236, *3000 = 370.80. So option A. I'll set A. So I'll have correct answer A. Options: 370.80, 372.60, 375.20, 378.00. So answer A. I'll adjust accordingly.

This question belongs to: Maths Compound Interest