The difference between simple interest and compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 36. 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. 36. Find the sum.

A. Rs. 16000

B. Rs. 15000

C. Rs. 12000

D. Rs. 14400

Answer: Option D

Solution (By JKSSB Mock Tests)

Difference for 2 years = P * (R/100)^2 => 36 = P * (5/100)^2 => 36 = P * (25 / 10000) => P = (36 * 10000) / 25 = 14400.

This question belongs to: Maths Compound Interest

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Compound Interest Questions

Question #1

Share Report

A sum of money invested at compound interest doubles itself in 18 years. In how many years will it become 4 times of itself?

A. 45 years

B. 54 years

C. 27 years

D. 36 years

View Answer & Solution Discuss

Get Complete Subject PDF for Maths

Correct Answer: Option D

Explanation:
The sum doubles (2^1) in 18 years. It will become 4 (2^2) times in 2 * 18 = 36 years.

This question belongs to: Maths Compound Interest

Question #2

Share Report

In what time will Rs. 5000 amount to Rs. 6050 at 10% per annum compound interest?

A. 2 years

B. 3 years

C. 4 years

D. 1 year

View Answer & Solution Discuss

Get Complete Subject PDF for Maths

Correct Answer: Option A

Explanation:
5000(1.1)^t = 6050 ⇒ (1.1)^t = 1.21 = (1.1)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #3

Share Report

The compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 246. What is the sum?

A. Rs. 2600

B. Rs. 2400

C. Rs. 2200

D. Rs. 2500

View Answer & Solution Discuss

Get Complete Subject PDF for Maths

Correct Answer: Option B

Explanation:
Effective compound interest rate for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Given 10.25% of P = 246 => P = 246 / 0.1025 = Rs. 2400.

This question belongs to: Maths Compound Interest

Explore All Compound Interest MCQs