The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs. 124. Find the sum. MCQ with Answer and Explanation

Question

The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs. 124. Find the sum.

A. Rs. 3500

B. Rs. 4000

C. Rs. 4500

D. Rs. 5000

Answer: Option B

Solution (By JKSSB Mock Tests)

Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 124 = P * (10/100)^2 * (3 + 10/100) => 124 = P * (1/100) * (3.1) => 124 = P * 0.031 => P = 124 / 0.031 = Rs. 4000.

This question belongs to: Maths Compound Interest

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Question #1

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Find the amount on Rs. 12500 at 8% per annum compound interest for 2 years.

A. Rs. 14620

B. Rs. 14640

C. Rs. 14580

D. Rs. 14600

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Correct Answer: Option C

Explanation:
A = 12500 × (1.08)² = 12500 × 1.1664 = 14580.

This question belongs to: Maths Compound Interest

Question #2

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Find the compound interest on Rs. 10000 for 1 year at 4% per annum, compounded quarterly.

A. Rs. 400.00

B. Rs. 412.20

C. Rs. 410.00

D. Rs. 406.04

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Correct Answer: Option D

Explanation:
Quarterly rate = 4 / 4 = 1%. Time = 4 quarters. Amount = 10000 * (1 + 1/100)^4 = 10000 * (1.01)^4 = 10000 * 1.04060401 = Rs. 10406.04. Compound Interest = 10406.04 - 10000 = Rs. 406.04.

This question belongs to: Maths Compound Interest