What is the compound interest on Rs. 2000 for 2 years at 5% per annum compounded annually? MCQ with Answer and Explanation

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What is the compound interest on Rs. 2000 for 2 years at 5% per annum compounded annually?

A. Rs. 200

B. Rs. 210

C. Rs. 220

D. Rs. 205

Answer: Option D

Solution (By JKSSB Mock Tests)

Amount = 2000 × (1.05)² = 2000 × 1.1025 = 2205, CI = 2205 − 2000 = Rs. 205.

This question belongs to: Maths Compound Interest

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Question #1

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The compound interest on a certain sum for 2 years at 10% per annum is Rs. 210. Find the principal sum.

A. Rs. 1000

B. Rs. 1050

C. Rs. 950

D. Rs. 1100

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Correct Answer: Option A

Explanation:
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Given 21% of P = 210 => P = 210 / 0.21 = Rs. 1000.

This question belongs to: Maths Compound Interest

Question #2

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A sum of money at compound interest becomes 10 times in 2 years. In how many years will it become 100 times?

A. 4 years

B. 3 years

C. 5 years

D. 6 years

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Correct Answer: Option A

Explanation:
100 = 10², so 2 × 2 = 4 years.

This question belongs to: Maths Compound Interest

Question #3

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What sum will amount to Rs. 10816 in 2 years at 4% compound interest?

A. Rs. 10200

B. Rs. 9800

C. Rs. 10400

D. Rs. 10000

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Correct Answer: Option D

Explanation:
P = 10816 / (1.04)² = 10816 / 1.0816 = 10000.

This question belongs to: Maths Compound Interest

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