The difference between simple interest and compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 100. Find the sum. MCQ with Answer and Explanation

Question

The difference between simple interest and compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 100. Find the sum.

A. Rs. 10000

B. Rs. 9000

C. Rs. 11000

D. Rs. 12000

Answer: Option A

Solution (By JKSSB Mock Tests)

Difference for 2 years = P * (R/100)^2 => 100 = P * (10/100)^2 => 100 = P * 0.01 => P = Rs. 10000.

This question belongs to: Maths Compound Interest

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Question #1

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The difference between CI and SI on Rs. 6400 for 2 years at 6.25% is:

A. Rs. 25

B. Rs. 35

C. Rs. 30

D. Rs. 20

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Correct Answer: Option A

Explanation:
6.25% = 1/16. D = P × (R/100)² = 6400 × (1/16)² = 6400 × 1/256 = Rs. 25.

This question belongs to: Maths Compound Interest

Question #2

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The effective annual rate of interest for 10% per annum compounded quarterly is:

A. 10.50%

B. 10.47%

C. 10.25%

D. 10.38%

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Correct Answer: Option D

Explanation:
Quarterly rate 2.5%, (1.025)⁴ = 1.10381289, effective = 10.3813% ≈ 10.38%.

This question belongs to: Maths Compound Interest

Question #3

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In how many years will Rs. 2500 amount to Rs. 3025 at 10% per annum compound interest?

A. 2.5 years

B. 2 years

C. 3 years

D. 1.5 years

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Correct Answer: Option B

Explanation:
2500(1.1)^t = 3025 ⇒ (1.1)^t = 1.21 = (1.1)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

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