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. 14400

B. Rs. 15000

C. Rs. 16000

D. Rs. 12000

Answer: Option A

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

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Question #1

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A sum of money amounts to Rs. 10404 in 2 years at 2% compound interest. Find the sum.

A. Rs. 10000

B. Rs. 10100

C. Rs. 9900

D. Rs. 9800

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Correct Answer: Option A

Explanation:
P = 10404 / (1.02)² = 10404 / 1.0404 = 10000.

This question belongs to: Maths Compound Interest

Question #2

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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. 36 years

B. 27 years

C. 54 years

D. 45 years

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Correct Answer: Option A

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 #3

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A sum of money placed at compound interest doubles itself in 4 years. In how many years will it amount to 8 times itself?

A. 12 years

B. 10 years

C. 16 years

D. 8 years

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Correct Answer: Option A

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

This question belongs to: Maths Compound Interest

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