The difference between simple interest and compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 25. 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. 25. Find the sum.

A. Rs. 2200

B. Rs. 3000

C. Rs. 2700

D. Rs. 2500

Answer: Option D

Solution (By JKSSB Mock Tests)

Difference for 2 years = P * (R/100)^2 => 25 = P * (10/100)^2 => 25 = P * 0.01 => P = Rs. 2500.

This question belongs to: Maths Compound Interest

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Question #1

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If the simple interest on a sum for 2 years at 8% is Rs. 400, the compound interest on the same sum for 2 years at 8% is:

A. Rs. 432

B. Rs. 416

C. Rs. 440

D. Rs. 424

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Correct Answer: Option B

Explanation:
P = SI × 100 / (8×2) = 40000/16 = 2500. CI = 2500[(1.08)² − 1] = 2500 × 0.1664 = Rs. 416.

This question belongs to: Maths Compound Interest

Question #2

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At what rate percent compound interest will Rs. 20000 amount to Rs. 22050 in 2 years?

A. 6%

B. 4%

C. 7%

D. 5%

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Correct Answer: Option D

Explanation:
20000(1+r)² = 22050 ⇒ (1+r)² = 1.1025 = (1.05)² ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #3

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A sum of money at compound interest becomes 5 times in 4 years. In how many years will it become 25 times?

A. 10 years

B. 8 years

C. 6 years

D. 12 years

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Correct Answer: Option B

Explanation:
25 = 5², so 4 × 2 = 8 years.

This question belongs to: Maths Compound Interest

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