The compound interest on Rs. 5000 at 4% per annum for 2 years compounded annually is: MCQ with Answer and Explanation

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The compound interest on Rs. 5000 at 4% per annum for 2 years compounded annually is:

A. Rs. 424

B. Rs. 400

C. Rs. 408

D. Rs. 416

Answer: Option C

Solution (By JKSSB Mock Tests)

A = 5000 × (1.04)² = 5000 × 1.0816 = 5408, CI = 5408 − 5000 = Rs. 408.

This question belongs to: Maths Compound Interest

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Question #1

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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. 2200

B. Rs. 2400

C. Rs. 2500

D. Rs. 2600

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Correct Answer: Option B

Explanation:
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

Question #2

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The difference between CI and SI on a certain sum for 2 years at 6% is Rs. 36. The sum is:

A. Rs. 10000

B. Rs. 8000

C. Rs. 11000

D. Rs. 9000

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Correct Answer: Option A

Explanation:
D = P × (0.06)² = P × 0.0036 = 36 ⇒ P = 10000.

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Question #3

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The difference between CI and SI on Rs. 7200 for 2 years at 10% is:

A. Rs. 68

B. Rs. 80

C. Rs. 72

D. Rs. 60

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Correct Answer: Option C

Explanation:
D = 7200 × 0.01 = Rs. 72.

This question belongs to: Maths Compound Interest

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