The compound interest on a sum for 2 years at 4% is Rs. 408. The sum is: MCQ with Answer and Explanation

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

A. Rs. 5000

B. Rs. 4800

C. Rs. 5200

D. Rs. 5400

Answer: Option A

Solution (By JKSSB Mock Tests)

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

This question belongs to: Maths Compound Interest

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Question #1

The compound interest on Rs. 8000 at 10% per annum for 1 year compounded half-yearly is:

A. Rs. 840

B. Rs. 820

C. Rs. 800

D. Rs. 860

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Correct Answer: Option B

Explanation:
Half-yearly rate 5%, n=2. A = 8000 × (1.05)² = 8000 × 1.1025 = 8820, CI = 8820 − 8000 = Rs. 820.

This question belongs to: Maths Compound Interest

Question #2

Find the compound interest on Rs. 10000 for 1 year at 12% per annum, compounded quarterly.

A. Rs. 1255.09

B. Rs. 1280.00

C. Rs. 1200.00

D. Rs. 1262.00

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Correct Answer: Option A

Explanation:
Quarterly rate = 12 / 4 = 3%. Time = 4 quarters. Amount = 10000 * (1 + 3/100)^4 = 10000 * (1.03)^4 = 10000 * 1.12550881 = Rs. 11255.09. Compound Interest = 11255.09 - 10000 = Rs. 1255.09.

This question belongs to: Maths Compound Interest

Question #3

In how many years will Rs. 2000 amount to Rs. 2205 at 5% per annum compound interest?

A. 1.5 years

B. 3 years

C. 2.5 years

D. 2 years

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Correct Answer: Option D

Explanation:
2000(1.05)^t = 2205 ⇒ (1.05)^t = 1.1025 = (1.05)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

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