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. 3000

B. Rs. 2500

C. Rs. 3500

D. Rs. 4000

Answer: Option A

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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A sum of money invested at compound interest doubles itself in 6 years. In how many years will it become 4 times of itself?

A. 12 years

B. 15 years

C. 18 years

D. 9 years

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Correct Answer: Option A

Explanation:
The sum doubles (2^1) in 6 years. It will become 4 (2^2) times in 2 * 6 = 12 years.

This question belongs to: Maths Compound Interest

Question #2

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The compound interest on a sum for 3 years at 10% is Rs. 993. The sum is:

A. Rs. 3300

B. Rs. 3000

C. Rs. 3600

D. Rs. 2700

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Correct Answer: Option B

Explanation:
CI = P[(1.1)³ − 1] = P × 0.331 = 993 ⇒ P = 993 / 0.331 = 3000.

This question belongs to: Maths Compound Interest

Question #3

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The compound interest on Rs. 12500 at 8% per annum for 1 year compounded half-yearly is:

A. Rs. 1060

B. Rs. 1000

C. Rs. 1040

D. Rs. 1020

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Correct Answer: Option D

Explanation:
Half-yearly rate = 4%, n=2. A = 12500 × (1.04)² = 12500 × 1.0816 = 13520, CI = 13520 − 12500 = Rs. 1020.

This question belongs to: Maths Compound Interest

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