The difference between simple interest and compound interest on a certain sum of money for 3 years at 20% per annum is Rs. 384. 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 20% per annum is Rs. 384. Find the sum.

A. Rs. 3500

B. Rs. 4000

C. Rs. 3000

D. Rs. 2500

Answer: Option C

Solution (By JKSSB Mock Tests)

Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 384 = P * (20/100)^2 * (3 + 20/100) => 384 = P * (1/25) * (3.2) => 384 = P * 0.128 => P = 384 / 0.128 = Rs. 3000.

This question belongs to: Maths Compound Interest

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Question #1

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Find the compound interest on Rs. 4500 at 10% per annum for 1 year compounded half-yearly.

A. Rs. 461.25

B. Rs. 472.50

C. Rs. 480

D. Rs. 450

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Correct Answer: Option A

Explanation:
Half-yearly rate 5%, n=2. A = 4500 × (1.05)² = 4500 × 1.1025 = 4961.25, CI = 4961.25 − 4500 = Rs. 461.25.

This question belongs to: Maths Compound Interest

Question #2

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If the simple interest on a sum for 3 years at 10% is Rs. 600, the compound interest on the same sum for 2 years at the same rate is:

A. Rs. 440

B. Rs. 400

C. Rs. 420

D. Rs. 410

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Correct Answer: Option C

Explanation:
SI = P × 10 × 3 / 100 = 0.3P = 600 ⇒ P = 2000. CI for 2 years = 2000[(1.1)² − 1] = 2000 × 0.21 = Rs. 420.

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Question #3

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The difference between CI and SI on Rs. 1400 for 2 years at 10% is:

A. Rs. 15

B. Rs. 14

C. Rs. 13

D. Rs. 12

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Correct Answer: Option B

Explanation:
D = 1400 × 0.01 = Rs. 14.

This question belongs to: Maths Compound Interest

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