The simple interest on a sum for 2 years at 5% is Rs. 500. The compound interest on the same sum for 2 years at 5% is: MCQ with Answer and Explanation

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The simple interest on a sum for 2 years at 5% is Rs. 500. The compound interest on the same sum for 2 years at 5% is:

A. Rs. 500

B. Rs. 512.50

C. Rs. 510

D. Rs. 525

Answer: Option B

Solution (By JKSSB Mock Tests)

P = 50000/(5×2) = 5000. CI = 5000[(1.05)² − 1] = 5000 × 0.1025 = Rs. 512.50.

This question belongs to: Maths Compound Interest

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Question #1

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At what rate percent compound interest will Rs. 20000 amount to Rs. 22050 in 2 years?

A. 7%

B. 5%

C. 6%

D. 4%

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Correct Answer: Option B

Explanation:
20000(1+r)² = 22050 ⇒ (1+r)² = 1.1025 = (1.05)² ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #2

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At what rate of compound interest per annum will a sum of Rs. 800 become Rs. 882 in 2 years?

A. 8%

B. 5%

C. 4%

D. 6%

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Correct Answer: Option B

Explanation:
800 × (1 + r)² = 882 ⇒ (1+r)² = 1.1025 ⇒ 1+r = 1.05 ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #3

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If the compound interest on a sum for 2 years at 5% is Rs. 307.50, the simple interest on the same sum for 2 years at 5% is:

A. Rs. 310

B. Rs. 290

C. Rs. 300

D. Rs. 280

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Correct Answer: Option C

Explanation:
CI = P × 0.1025 = 307.50 ⇒ P = 3000. SI = 3000 × 5 × 2 / 100 = Rs. 300.

This question belongs to: Maths Compound Interest

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