The difference between simple interest and compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 144. 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 5% per annum is Rs. 144. Find the sum.

A. Rs. 64000

B. Rs. 60000

C. Rs. 55000

D. Rs. 57600

Answer: Option D

Solution (By JKSSB Mock Tests)

Difference for 2 years = P * (R/100)^2 => 144 = P * (5/100)^2 => 144 = P * (25 / 10000) => P = (144 * 10000) / 25 = Rs. 57600.

This question belongs to: Maths Compound Interest

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Question #1

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

A. 12 years

B. 10 years

C. 15 years

D. 8 years

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Correct Answer: Option B

Explanation:
2²=4, so 5×2=10 years.

This question belongs to: Maths Compound Interest

Question #2

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A sum of money yields a compound interest of Rs. 205 in 2 years at 5% per annum. Find the principal sum.

A. Rs. 1800

B. Rs. 2200

C. Rs. 2400

D. Rs. 2000

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Correct Answer: Option D

Explanation:
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Given 10.25% of P = 205 => P = 205 / 0.1025 = Rs. 2000.

This question belongs to: Maths Compound Interest

Question #3

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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. 15000

B. Rs. 10000

C. Rs. 12000

D. Rs. 8000

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Correct Answer: Option B

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

This question belongs to: Maths Compound Interest

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