The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs. 620. 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. 620. Find the sum.

A. Rs. 20000

B. Rs. 24000

C. Rs. 18000

D. Rs. 22000

Answer: Option A

Solution (By JKSSB Mock Tests)

Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 620 = P * (10/100)^2 * (3 + 10/100) => 620 = P * (1/100) * (3.1) => 620 = P * 0.031 => P = 620 / 0.031 = Rs. 20000.

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

The simple interest on a sum for 2 years at 6% is Rs. 480. The compound interest on the same sum for 2 years at 6% is:

A. Rs. 499.20

B. Rs. 494.40

C. Rs. 504.00

D. Rs. 508.80

View Answer & Solution Discuss

Get Complete Subject PDF for Maths

Correct Answer: Option B

Explanation:
P = 48000/(6×2) = 4000. CI = 4000[(1.06)² − 1] = 4000 × 0.1236 = Rs. 494.40.

This question belongs to: Maths Compound Interest

Question #2

Share Report

The simple interest on a certain sum for 2 years at 5% is Rs. 200. The compound interest on the same sum for the same period and rate is:

A. Rs. 200

B. Rs. 210

C. Rs. 205

D. Rs. 215

View Answer & Solution Discuss

Get Complete Subject PDF for Maths

Correct Answer: Option C

Explanation:
SI = P × 5 × 2/100 = 0.1P = 200 ⇒ P = 2000. CI = P[(1.05)² − 1] = 2000 × 0.1025 = Rs. 205.

This question belongs to: Maths Compound Interest

Question #3

Share Report

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. 8 years

C. 16 years

D. 10 years

View Answer & Solution Discuss

Get Complete Subject PDF for Maths

Correct Answer: Option A

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

This question belongs to: Maths Compound Interest

Explore All Compound Interest MCQs