The difference between simple interest and compound interest on a certain sum of money for 2 years at 8% per annum is Rs. 128. 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 8% per annum is Rs. 128. Find the sum.

A. Rs. 22000

B. Rs. 20000

C. Rs. 18000

D. Rs. 24000

Answer: Option B

Solution (By JKSSB Mock Tests)

Difference for 2 years = P * (R/100)^2 => 128 = P * (8/100)^2 => 128 = P * (64 / 10000) => P = (128 * 10000) / 64 = Rs. 20000.

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 10% is Rs. 50. The sum is:

A. Rs. 4500

B. Rs. 6000

C. Rs. 5000

D. Rs. 5500

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Correct Answer: Option C

Explanation:
D = P × (10/100)² = P × 0.01 = 50 ⇒ P = 5000.

This question belongs to: Maths Compound Interest

Question #2

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A certain sum amounts to Rs. 2205 in 2 years at 5% compound interest. The sum is:

A. Rs. 2100

B. Rs. 2000

C. Rs. 1900

D. Rs. 2150

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Correct Answer: Option B

Explanation:
P = 2205 / (1.05)² = 2205 / 1.1025 = 2000.

This question belongs to: Maths Compound Interest

Question #3

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A sum of money placed at compound interest amounts to Rs. 1200 in 2 years and Rs. 1320 in 3 years. Find the rate of interest per annum.

A. 15%

B. 10%

C. 8%

D. 12%

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Correct Answer: Option B

Explanation:
Interest earned in the 3rd year = 1320 - 1200 = Rs. 120. Rate of interest = (120 / 1200) * 100 = 10%.

This question belongs to: Maths Compound Interest

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