What is the principal if the compound interest on it for 2 years at 10% is Rs. 1050? MCQ with Answer and Explanation

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What is the principal if the compound interest on it for 2 years at 10% is Rs. 1050?

A. Rs. 6000

B. Rs. 5500

C. Rs. 4500

D. Rs. 5000

Answer: Option D

Solution (By JKSSB Mock Tests)

CI = P × 0.21 = 1050 ⇒ P = 1050 / 0.21 = 5000.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1

In how many years will Rs. 1200 amount to Rs. 1389.15 at 5% compound interest?

A. 3.5 years

B. 2 years

C. 2.5 years

D. 3 years

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Correct Answer: Option D

Explanation:
1200(1.05)^t = 1389.15 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #2

The difference between simple interest and compound interest on a certain sum of money for 3 years at 5% per annum is Rs. 61. Find the sum.

A. Rs. 8500

B. Rs. 7500

C. Rs. 9000

D. Rs. 8000

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Correct Answer: Option D

Explanation:
Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 61 = P * (5/100)^2 * (3 + 5/100) => 61 = P * (1/400) * (3.05) => P = (61 * 400) / 3.05 = 24400 / 3.05 = Rs. 8000.

This question belongs to: Maths Compound Interest

Question #3

A sum of money at compound interest becomes Rs. 7396 in 2 years and Rs. 7950.70 in 3 years. Find the sum.

A. Rs. 6400

B. Rs. 6000

C. Rs. 6500

D. Rs. 6250

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Correct Answer: Option A

Explanation:
Rate = (7950.70/7396 - 1)*100 = 7.5%? 7950.70/7396 = 1.075, so 7.5%. P = 7396 / (1.075)² = 7396 / 1.155625 = 6400 exactly. Check: 1.075^2 = 1.155625, 6400*1.155625 = 7396. So answer 6400.

This question belongs to: Maths Compound Interest

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