The difference between simple interest and compound interest on a certain sum of money for 2 years at 5% 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 5% per annum is Rs. 25. Find the sum.

A. Rs. 10000

B. Rs. 11000

C. Rs. 12000

D. Rs. 9000

Answer: Option A

Solution (By JKSSB Mock Tests)

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

This question belongs to: Maths Compound Interest

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Question #1

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The difference between simple interest and compound interest on a certain sum of money for 2 years at 6% per annum is Rs. 144. Find the sum.

A. Rs. 40000

B. Rs. 44000

C. Rs. 36000

D. Rs. 48000

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Correct Answer: Option A

Explanation:
Difference for 2 years = P * (R/100)^2 => 144 = P * (6/100)^2 => 144 = P * (36 / 10000) => P = (144 * 10000) / 36 = Rs. 40000.

This question belongs to: Maths Compound Interest

Question #2

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Find the compound interest on Rs. 2000 at 4% per annum for 1 year compounded quarterly.

A. Rs. 83.00

B. Rs. 81.21

C. Rs. 80.80

D. Rs. 82.40

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Correct Answer: Option B

Explanation:
Quarterly rate 1%, n=4. A = 2000 × (1.01)⁴ = 2000 × 1.04060401 = 2081.208, CI = 81.208 ≈ 81.21.

This question belongs to: Maths Compound Interest

Question #3

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The compound interest on Rs. 15000 at 10% per annum compounded half-yearly for 1 year is:

A. Rs. 1600

B. Rs. 1537.50

C. Rs. 1500

D. Rs. 1575

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Correct Answer: Option B

Explanation:
Half-yearly rate 5%, n=2. A = 15000 × (1.05)² = 15000 × 1.1025 = 16537.50, CI = 16537.50 − 15000 = Rs. 1537.50.

This question belongs to: Maths Compound Interest

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