The difference between the compound interest compounded annually and the simple interest on a certain sum of money for 2 years at 6% per annum is Rs. 14.40. Find the sum. MCQ with Answer and Explanation

The difference between the compound interest compounded annually and the simple interest on a certain sum of money for 2 years at 6% per annum is Rs. 14.40. Find the sum.
A. Rs. 4000
B. Rs. 4400
C. Rs. 3600
D. Rs. 4200
Answer: Option A
Solution (By JKSSB Mock Tests)
Difference for 2 years = P * (R/100)^2 => 14.40 = P * (6/100)^2 => 14.40 = P * (36 / 10000) => P = (14.40 * 10000) / 36 = 144000 / 36 = Rs. 4000.

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Practice More Compound Interest Questions

Question #1
The population of a town increases by 10% per annum. If the present population is 6050, what was it 2 years ago?
A. 6000
B. 5800
C. 5000
D. 5500

Correct Answer: Option C


Explanation:
Population 2 years ago = 6050 / (1.1)² = 6050 / 1.21 = 5000.

This question belongs to: Maths Compound Interest
Question #2
At what rate percent compound interest will Rs. 10000 amount to Rs. 12100 in 2 years?
A. 12%
B. 15%
C. 8%
D. 10%

Correct Answer: Option D


Explanation:
10000(1+r)² = 12100 ⇒ (1+r)² = 1.21 ⇒ r = 10%.

This question belongs to: Maths Compound Interest
Question #3
The difference between CI and SI on Rs. 2500 for 2 years at 8% is:
A. Rs. 16
B. Rs. 17
C. Rs. 14
D. Rs. 15

Correct Answer: Option A


Explanation:
D = 2500 × 0.0064 = Rs. 16.

This question belongs to: Maths Compound Interest