The simple interest on a sum for 2 years at 12% is Rs. 720. The compound interest on the same sum for 2 years at 12% is: MCQ with Answer and Explanation

Question

The simple interest on a sum for 2 years at 12% is Rs. 720. The compound interest on the same sum for 2 years at 12% is:

A. Rs. 763.20

B. Rs. 768.00

C. Rs. 760.00

D. Rs. 752.64

Answer: Option A

Solution (By JKSSB Mock Tests)

P = 72000/(12×2) = 3000. CI = 3000[(1.12)² − 1] = 3000 × 0.2544 = 763.20.

This question belongs to: Maths Compound Interest

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Question #1

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A sum of money amounts to Rs. 10816 in 2 years and Rs. 11248.64 in 3 years at compound interest. Find the sum.

A. Rs. 10500

B. Rs. 10000

C. Rs. 9000

D. Rs. 9500

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Correct Answer: Option B

Explanation:
Rate = (11248.64/10816 − 1) × 100 = 4%. P = 10816 / (1.04)² = 10000.

This question belongs to: Maths Compound Interest

Question #2

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The effective annual rate for 9% per annum compounded half-yearly is:

A. 9.25%

B. 9.10%

C. 9.20%

D. 9.30%

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Correct Answer: Option C

Explanation:
Half-yearly rate 4.5%, (1.045)² = 1.092025, effective = 9.2025% ≈ 9.20%.

This question belongs to: Maths Compound Interest

Question #3

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The difference between CI and SI on Rs. 6800 for 2 years at 10% is:

A. Rs. 68

B. Rs. 65

C. Rs. 70

D. Rs. 60

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Correct Answer: Option A

Explanation:
D = 6800 × 0.01 = Rs. 68.

This question belongs to: Maths Compound Interest

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