The compound interest on Rs. 2400 for 2 years at 5% per annum is: MCQ with Answer and Explanation

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The compound interest on Rs. 2400 for 2 years at 5% per annum is:

A. Rs. 252

B. Rs. 260

C. Rs. 246

D. Rs. 240

Answer: Option C

Solution (By JKSSB Mock Tests)

A = 2400 × (1.05)² = 2400 × 1.1025 = 2646, CI = 2646 − 2400 = Rs. 246.

This question belongs to: Maths Compound Interest

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Question #1

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The value of a machine depreciates at 20% per annum. Its present value is Rs. 32000. What was its value 2 years ago?

A. Rs. 40000

B. Rs. 48000

C. Rs. 50000

D. Rs. 51200

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Correct Answer: Option C

Explanation:
Value 2 years ago = Present value / (1 − 0.2)² = 32000 / 0.64 = 50000.

This question belongs to: Maths Compound Interest

Question #2

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The effective annual rate for 11% per annum compounded half-yearly is:

A. 11.25%

B. 11.50%

C. 11.30%

D. 11.35%

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Correct Answer: Option C

Explanation:
Half-yearly rate 5.5%, (1.055)² = 1.113025, effective = 11.3025% ≈ 11.30%.

This question belongs to: Maths Compound Interest

Question #3

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The simple interest on a sum for 2 years at 6% is Rs. 720. The compound interest on the same sum for 2 years at 6% is:

A. Rs. 756.00

B. Rs. 763.20

C. Rs. 741.60

D. Rs. 748.80

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Correct Answer: Option C

Explanation:
P = 72000/(6×2) = 6000. CI = 6000 × 0.1236 = Rs. 741.60.

This question belongs to: Maths Compound Interest

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