The simple interest on a sum for 2 years at 7% is Rs. 280. The compound interest on the same sum for 2 years at 7% is: MCQ with Answer and Explanation

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The simple interest on a sum for 2 years at 7% is Rs. 280. The compound interest on the same sum for 2 years at 7% is:

A. Rs. 297.20

B. Rs. 294.00

C. Rs. 300.00

D. Rs. 289.80

Answer: Option D

Solution (By JKSSB Mock Tests)

P = 28000/(7×2) = 2000. CI = 2000[(1.07)² − 1] = 2000 × 0.1449 = 289.80.

This question belongs to: Maths Compound Interest

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Question #1

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A sum of money invested at compound interest doubles itself in 10 years. In how many years will it become 4 times of itself?

A. 20 years

B. 15 years

C. 30 years

D. 25 years

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Correct Answer: Option A

Explanation:
The sum doubles (2^1) in 10 years. It will become 4 (2^2) times in 2 * 10 = 20 years.

This question belongs to: Maths Compound Interest

Question #2

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The compound interest on Rs. 5000 at 4% per annum for 2 years compounded annually is:

A. Rs. 408

B. Rs. 424

C. Rs. 400

D. Rs. 416

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Correct Answer: Option A

Explanation:
A = 5000 × (1.04)² = 5000 × 1.0816 = 5408, CI = 5408 − 5000 = Rs. 408.

This question belongs to: Maths Compound Interest

Question #3

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The effective annual rate for 15% per annum compounded half-yearly is:

A. 15.50%

B. 15.75%

C. 15.25%

D. 15.56%

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Correct Answer: Option D

Explanation:
Half-yearly rate 7.5%, (1.075)² = 1.155625, effective = 15.5625% ≈ 15.56%.

This question belongs to: Maths Compound Interest

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