The difference between simple interest and compound interest on a certain sum of money for 3 years at 5% per annum is Rs. 61. 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 5% per annum is Rs. 61. Find the sum.

A. Rs. 8500

B. Rs. 9000

C. Rs. 7500

D. Rs. 8000

Answer: Option D

Solution (By JKSSB Mock Tests)

Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 61 = P * (5/100)^2 * (3 + 5/100) => 61 = P * (1/400) * (3.05) => P = (61 * 400) / 3.05 = 24400 / 3.05 = Rs. 8000.

This question belongs to: Maths Compound Interest

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Find the compound interest on Rs. 10000 for 1 year at 20% per annum, compounded quarterly.

A. Rs. 2155.06

B. Rs. 2250.00

C. Rs. 2000.00

D. Rs. 2200.00

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Correct Answer: Option A

Explanation:
Quarterly rate = 20 / 4 = 5%. Time = 4 quarters. Amount = 10000 * (1 + 5/100)^4 = 10000 * (1.05)^4 = 10000 * 1.21550625 = Rs. 12155.06. Compound Interest = 12155.06 - 10000 = Rs. 2155.06.

This question belongs to: Maths Compound Interest