The difference between compound interest and simple interest on Rs. 1600 for 2 years at 5% is: MCQ with Answer and Explanation

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The difference between compound interest and simple interest on Rs. 1600 for 2 years at 5% is:

A. Rs. 4.80

B. Rs. 4.00

C. Rs. 3.20

D. Rs. 5.00

Answer: Option B

Solution (By JKSSB Mock Tests)

D = 1600 × (0.05)² = 1600 × 0.0025 = Rs. 4.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1

The compound interest on Rs. 2600 at 10% per annum for 2 years is:

A. Rs. 598

B. Rs. 520

C. Rs. 572

D. Rs. 546

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Correct Answer: Option D

Explanation:
A = 2600 × 1.21 = 3146, CI = 3146 − 2600 = Rs. 546.

This question belongs to: Maths Compound Interest

Question #2

A sum of money at compound interest doubles in 7 years. In how many years will it become 8 times?

A. 28 years

B. 21 years

C. 14 years

D. 35 years

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Correct Answer: Option B

Explanation:
Doubles in 7 years, 8 = 2³, so 7 × 3 = 21 years.

This question belongs to: Maths Compound Interest

Question #3

If Rs. 5000 becomes Rs. 5832 in 2 years at compound interest, the rate is:

A. 6%

B. 8%

C. 7%

D. 9%

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Correct Answer: Option B

Explanation:
5000(1+r)² = 5832 ⇒ (1+r)² = 1.1664 = (1.08)² ⇒ r = 8%.

This question belongs to: Maths Compound Interest

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