The difference between simple interest and compound interest on a certain sum of money for 2 years at 4% per annum is Rs. 16. 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 4% per annum is Rs. 16. Find the sum.

A. Rs. 12000

B. Rs. 10000

C. Rs. 11000

D. Rs. 9000

Answer: Option B

Solution (By JKSSB Mock Tests)

Difference for 2 years = P * (R/100)^2 => 16 = P * (4/100)^2 => 16 = P * (16 / 10000) => P = Rs. 10000.

This question belongs to: Maths Compound Interest

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Question #1

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The difference between compound interest and simple interest on a sum for 2 years at 5% per annum is Rs. 25. The sum is:

A. Rs. 10000

B. Rs. 15000

C. Rs. 8000

D. Rs. 12000

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Correct Answer: Option A

Explanation:
Difference = P × (r/100)² ⇒ 25 = P × 0.0025 ⇒ P = 10000.

This question belongs to: Maths Compound Interest

Question #2

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A sum of money becomes 2 times in 4 years at compound interest. In how many years will it become 8 times?

A. 12 years

B. 8 years

C. 10 years

D. 16 years

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Correct Answer: Option A

Explanation:
2 times in 4 years; 8 = 2³, so 4 × 3 = 12 years.

This question belongs to: Maths Compound Interest

Question #3

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Find the compound interest on Rs. 2000 at 10% per annum for 1.5 years compounded half-yearly.

A. Rs. 350

B. Rs. 330

C. Rs. 315.25

D. Rs. 300

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Correct Answer: Option C

Explanation:
Half-yearly rate 5%, n=3. A = 2000 × (1.05)³ = 2000 × 1.157625 = 2315.25, CI = 2315.25 − 2000 = Rs. 315.25.

This question belongs to: Maths Compound Interest

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