The difference between simple interest and compound interest on Rs. 18000 for 2 years is Rs. 405. Find the rate of interest per annum. MCQ with Answer and Explanation

Question

The difference between simple interest and compound interest on Rs. 18000 for 2 years is Rs. 405. Find the rate of interest per annum.

A. 20%

B. 12%

C. 18%

D. 15%

Answer: Option D

Solution (By JKSSB Mock Tests)

Difference for 2 years = P * (R/100)^2 => 405 = 18000 * (R/100)^2 => 405 = 1.8 * R^2 => R^2 = 405 / 1.8 = 225 => R = 15%.

This question belongs to: Maths Compound Interest

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Question #1

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The compound interest on Rs. 3500 at 8% per annum for 2 years is:

A. Rs. 576.40

B. Rs. 588.00

C. Rs. 582.40

D. Rs. 592.00

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Correct Answer: Option C

Explanation:
A = 3500 × (1.08)² = 3500 × 1.1664 = 4082.40, CI = 4082.40 − 3500 = Rs. 582.40.

This question belongs to: Maths Compound Interest

Question #2

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A machine depreciates at 5% per annum. Its present value is Rs. 5415. What was its value 2 years ago?

A. Rs. 5800

B. Rs. 6000

C. Rs. 6400

D. Rs. 6200

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Correct Answer: Option B

Explanation:
Value 2 years ago = 5415 / (0.95)² = 5415 / 0.9025 = 6000.

This question belongs to: Maths Compound Interest

Question #3

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At what rate percent compound interest will Rs. 1600 amount to Rs. 1852.20 in 3 years?

A. 5%

B. 7%

C. 4%

D. 6%

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Correct Answer: Option A

Explanation:
1600(1+r)³ = 1852.20 ⇒ (1+r)³ = 1.157625 = (1.05)³ ⇒ r = 5%.

This question belongs to: Maths Compound Interest

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