The simple interest on a sum for 2 years at 4% is Rs. 200. The compound interest on the same sum for 2 years at 4% is: MCQ with Answer and Explanation

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The simple interest on a sum for 2 years at 4% is Rs. 200. The compound interest on the same sum for 2 years at 4% is:

A. Rs. 200

B. Rs. 202

C. Rs. 204

D. Rs. 206

Answer: Option C

Solution (By JKSSB Mock Tests)

P = 20000/(4×2) = 2500. CI = 2500 × [(1.04)² − 1] = 2500 × 0.0816 = 204.

This question belongs to: Maths Compound Interest

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Question #1

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The difference between simple interest and compound interest on a certain sum of money for 2 years at 4% per annum is Rs. 16. Find the sum.

A. Rs. 12000

B. Rs. 9000

C. Rs. 10000

D. Rs. 11000

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Correct Answer: Option C

Explanation:
Difference for 2 years = P * (R/100)^2 => 16 = P * (4/100)^2 => 16 = P * (16 / 10000) => P = Rs. 10000.

This question belongs to: Maths Compound Interest

Question #2

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A sum of money at compound interest becomes 2.56 times in 2 years. The rate of interest is:

A. 60%

B. 55%

C. 50%

D. 65%

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Correct Answer: Option A

Explanation:
(1+r)² = 2.56 ⇒ 1+r = 1.6 ⇒ r = 60%.

This question belongs to: Maths Compound Interest

Question #3

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In how many years will Rs. 1600 amount to Rs. 1764 at 5% per annum compound interest?

A. 2 years

B. 2.5 years

C. 1.5 years

D. 1 year

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Correct Answer: Option A

Explanation:
1600(1.05)^t = 1764 ⇒ (1.05)^t = 1.1025 ⇒ t = 2.

This question belongs to: Maths Compound Interest

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