The simple interest on a sum for 2 years at 10% is Rs. 1000. The compound interest on the same sum for 2 years at 10% is: MCQ with Answer and Explanation

Question

The simple interest on a sum for 2 years at 10% is Rs. 1000. The compound interest on the same sum for 2 years at 10% is:

A. Rs. 1050

B. Rs. 1000

C. Rs. 1100

D. Rs. 1025

Answer: Option A

Solution (By JKSSB Mock Tests)

P = 100000/(10×2) = 5000. CI = 5000 × 0.21 = 1050.

This question belongs to: Maths Compound Interest

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Question #1

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In how many years will Rs. 8000 amount to Rs. 8820 at 5% per annum compound interest?

A. 4 years

B. 2 years

C. 1 year

D. 3 years

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Correct Answer: Option B

Explanation:
8000(1.05)^t = 8820 ⇒ (1.05)^t = 1.1025 ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #2

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In how many years will Rs. 4000 amount to Rs. 4630.50 at 5% per annum compound interest?

A. 3.5 years

B. 3 years

C. 2.5 years

D. 2 years

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Correct Answer: Option B

Explanation:
4000(1.05)^t = 4630.50 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #3

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What will be the compound interest on Rs. 7500 at 4% per annum for 2 years?

A. Rs. 624

B. Rs. 608

C. Rs. 612

D. Rs. 616

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Correct Answer: Option C

Explanation:
A = 7500 × (1.04)² = 7500 × 1.0816 = 8112, CI = 8112 − 7500 = Rs. 612.

This question belongs to: Maths Compound Interest

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