The simple interest on a sum for 2 years at 6% is Rs. 480. The compound interest on the same sum for 2 years at 6% is: MCQ with Answer and Explanation

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The simple interest on a sum for 2 years at 6% is Rs. 480. The compound interest on the same sum for 2 years at 6% is:

A. Rs. 499.20

B. Rs. 504.00

C. Rs. 494.40

D. Rs. 508.80

Answer: Option C

Solution (By JKSSB Mock Tests)

P = 48000/(6×2) = 4000. CI = 4000[(1.06)² − 1] = 4000 × 0.1236 = Rs. 494.40.

This question belongs to: Maths Compound Interest

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Question #1

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A sum of money placed at compound interest becomes double of itself in 5 years. In how many years will it become 64 times of itself?

A. 25 years

B. 40 years

C. 30 years

D. 35 years

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Correct Answer: Option C

Explanation:
The sum becomes 2^1 times in 5 years. It will become 64 (2^6) times in 6 * 5 = 30 years.

This question belongs to: Maths Compound Interest

Question #2

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A sum of money amounts to Rs. 6690 after 3 years and to Rs. 10035 after 6 years on compound interest. Find the sum.

A. Rs. 4000

B. Rs. 4460

C. Rs. 4660

D. Rs. 4500

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Correct Answer: Option B

Explanation:
Let the principal be P and expansion factor over 3 years be x. P * x = 6690 and P * x^2 = 10035. Therefore, x = 10035 / 6690 = 1.5. Principal P = 6690 / 1.5 = Rs. 4460.

This question belongs to: Maths Compound Interest

Question #3

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The difference between CI and SI on Rs. 9600 for 2 years at 5% is:

A. Rs. 26

B. Rs. 22

C. Rs. 20

D. Rs. 24

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Correct Answer: Option D

Explanation:
D = 9600 × 0.0025 = Rs. 24.

This question belongs to: Maths Compound Interest

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