The simple interest on a certain sum for 2 years at 5% is Rs. 200. The compound interest on the same sum for the same period and rate is: MCQ with Answer and Explanation

Question

The simple interest on a certain sum for 2 years at 5% is Rs. 200. The compound interest on the same sum for the same period and rate is:

A. Rs. 215

B. Rs. 205

C. Rs. 210

D. Rs. 200

Answer: Option B

Solution (By JKSSB Mock Tests)

SI = P × 5 × 2/100 = 0.1P = 200 ⇒ P = 2000. CI = P[(1.05)² − 1] = 2000 × 0.1025 = Rs. 205.

This question belongs to: Maths Compound Interest

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Question #1

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The difference between CI and SI on a sum for 2 years at 8% is Rs. 64. The sum is:

A. Rs. 9000

B. Rs. 11000

C. Rs. 10000

D. Rs. 8000

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Correct Answer: Option C

Explanation:
D = P × 0.0064 = 64 ⇒ P = 10000.

This question belongs to: Maths Compound Interest

Question #2

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The simple interest on a sum for 2 years at 7% is Rs. 280. The compound interest on the same sum for 2 years at 7% is:

A. Rs. 297.20

B. Rs. 289.80

C. Rs. 294.00

D. Rs. 300.00

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Correct Answer: Option B

Explanation:
P = 28000/(7×2) = 2000. CI = 2000[(1.07)² − 1] = 2000 × 0.1449 = 289.80.

This question belongs to: Maths Compound Interest

Question #3

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What is the compound interest on Rs. 64000 for 1 year at 5% per annum, compounded half-yearly?

A. Rs. 3320

B. Rs. 3280

C. Rs. 3200

D. Rs. 3240

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Correct Answer: Option D

Explanation:
Half-yearly rate = 5/2 = 2.5%. Time = 2 half-years. Amount = 64000 * (1 + 2.5/100)^2 = 64000 * (41/40)^2 = 64000 * (1681 / 1600) = 40 * 1681 = Rs. 67240. Compound Interest = 67240 - 64000 = Rs. 3240.

This question belongs to: Maths Compound Interest

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