The compound interest on a sum for 3 years at 5% is Rs. 788.125. The sum is: MCQ with Answer and Explanation

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The compound interest on a sum for 3 years at 5% is Rs. 788.125. The sum is:

A. Rs. 6000

B. Rs. 4500

C. Rs. 5000

D. Rs. 5500

Answer: Option C

Solution (By JKSSB Mock Tests)

CI = P[(1.05)³ − 1] = P × 0.157625 = 788.125 ⇒ P = 788.125 / 0.157625 = 5000.

This question belongs to: Maths Compound Interest

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Question #1

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The difference between compound interest (compounded annually) and simple interest on a certain sum of money for 3 years at 5% per annum is Rs. 122. Find the sum.

A. Rs. 18000

B. Rs. 15000

C. Rs. 16000

D. Rs. 17000

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Correct Answer: Option C

Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 122 = P * (5/100)^2 * (3 + 5/100) => 122 = P * (1/400) * (3.05) => 122 = P * (3.05 / 400) => P = (122 * 400) / 3.05 = 48800 / 3.05 = Rs. 16000.

This question belongs to: Maths Compound Interest

Question #2

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Find the compound interest on Rs. 20000 for 1 year at 8% per annum, compounded quarterly.

A. Rs. 1600.00

B. Rs. 1680.00

C. Rs. 1648.64

D. Rs. 1712.30

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Correct Answer: Option C

Explanation:
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 20000 * (1 + 2/100)^4 = 20000 * (1.02)^4 = 20000 * 1.08243216 = Rs. 21648.64. Compound Interest = 21648.64 - 20000 = Rs. 1648.64.

This question belongs to: Maths Compound Interest