The difference between compound interest and simple interest on a sum for 2 years at 8% is Rs. 32. The sum is: MCQ with Answer and Explanation

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The difference between compound interest and simple interest on a sum for 2 years at 8% is Rs. 32. The sum is:

A. Rs. 4000

B. Rs. 5500

C. Rs. 4500

D. Rs. 5000

Answer: Option D

Solution (By JKSSB Mock Tests)

D = P × (0.08)² = P × 0.0064 = 32 ⇒ P = 5000.

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 5% is Rs. 500. The compound interest on the same sum for 2 years at 5% is:

A. Rs. 510

B. Rs. 500

C. Rs. 512.50

D. Rs. 525

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Correct Answer: Option C

Explanation:
P = 50000/(5×2) = 5000. CI = 5000[(1.05)² − 1] = 5000 × 0.1025 = Rs. 512.50.

This question belongs to: Maths Compound Interest

Question #2

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The compound interest on a sum for 2 years at 12% is Rs. 636. The sum is:

A. Rs. 2500

B. Rs. 2400

C. Rs. 2600

D. Rs. 2000

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Correct Answer: Option A

Explanation:
CI = P[(1.12)² − 1] = P × 0.2544 = 636 ⇒ P = 636/0.2544 = 2500.

This question belongs to: Maths Compound Interest

Question #3

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A sum of money at compound interest amounts to Rs. 2420 in 2 years and to Rs. 2662 in 3 years. Find the rate of interest.

A. 8%

B. 10%

C. 15%

D. 12%

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Correct Answer: Option B

Explanation:
Amount in 3 years / Amount in 2 years = 2662/2420 = 1.1 = 1 + R/100 ⇒ R = 10%.

This question belongs to: Maths Compound Interest

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