The simple interest on a sum for 2 years at 6% is Rs. 720. 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. 720. The compound interest on the same sum for 2 years at 6% is:

A. Rs. 741.60

B. Rs. 748.80

C. Rs. 756.00

D. Rs. 763.20

Answer: Option A

Solution (By JKSSB Mock Tests)

P = 72000/(6×2) = 6000. CI = 6000 × 0.1236 = Rs. 741.60.

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 10 years. In how many years will it become 8 times of itself?

A. 40 years

B. 50 years

C. 30 years

D. 20 years

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Correct Answer: Option C

Explanation:
The sum becomes 2^1 times in 10 years. It will become 8 (2^3) times in 3 * 10 = 30 years.

This question belongs to: Maths Compound Interest

Question #2

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The effective annual rate of interest for 8% per annum compounded quarterly is:

A. 8.24%

B. 8.16%

C. 8.42%

D. 8.30%

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Correct Answer: Option A

Explanation:
Quarterly rate 2%, (1.02)⁴ = 1.08243216, effective = 8.2432% ≈ 8.24%.

This question belongs to: Maths Compound Interest

Question #3

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A sum of money invested at compound interest doubles itself in 7 years. In how many years will it become 8 times of itself?

A. 35 years

B. 21 years

C. 28 years

D. 14 years

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Correct Answer: Option B

Explanation:
The sum doubles (2^1) in 7 years. It will become 8 (2^3) times in 3 * 7 = 21 years.

This question belongs to: Maths Compound Interest

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