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. 204

B. Rs. 202

C. Rs. 200

D. Rs. 206

Answer: Option A

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 population of a town increases by 10% per annum. If the present population is 6050, what was it 2 years ago?

A. 5800

B. 6000

C. 5000

D. 5500

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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

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What is the compound interest on Rs. 10000 for 1 year at 12% per annum, compounded half-yearly?

A. Rs. 1200

B. Rs. 1250

C. Rs. 1236

D. Rs. 1300

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Correct Answer: Option C

Explanation:
Half-yearly rate = 12/2 = 6%. Time = 2 half-years. Amount = 10000 * (1 + 6/100)^2 = 10000 * 1.1236 = Rs. 11236. Compound Interest = 11236 - 10000 = Rs. 1236.

This question belongs to: Maths Compound Interest

Question #3

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The difference between CI and SI on Rs. 1000 for 2 years at 10% is:

A. Rs. 9

B. Rs. 8

C. Rs. 10

D. Rs. 11

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Correct Answer: Option C

Explanation:
D = 1000 × 0.01 = Rs. 10.

This question belongs to: Maths Compound Interest

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