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. 8000

B. Rs. 7500

C. Rs. 9000

D. Rs. 8500

Answer: Option A

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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Question #1

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The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs. 217. Find the sum.

A. Rs. 8000

B. Rs. 7000

C. Rs. 6500

D. Rs. 7500

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Correct Answer: Option B

Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 217 = P * (10/100)^2 * (3 + 10/100) => 217 = P * (1/100) * (3.1) => 217 = P * 0.031 => P = 217 / 0.031 = Rs. 7000.

This question belongs to: Maths Compound Interest

Question #2

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Find the compound interest on Rs. 40000 for 1 year at 12% per annum, compounded quarterly.

A. Rs. 5020.34

B. Rs. 5100.00

C. Rs. 5210.50

D. Rs. 4800.00

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Correct Answer: Option A

Explanation:
Quarterly rate = 12 / 4 = 3%. Time = 4 quarters. Amount = 40000 * (1 + 3/100)^4 = 40000 * (1.03)^4 = 40000 * 1.12550881 = Rs. 45020.35. Compound Interest = 45020.35 - 40000 = Rs. 5020.35. Correct option matches B layout metrics.

This question belongs to: Maths Compound Interest