Find the compound interest on Rs. 7200 at 5% per annum for 2 years. MCQ with Answer and Explanation

Question Report Error

Find the compound interest on Rs. 7200 at 5% per annum for 2 years.

A. Rs. 738

B. Rs. 740

C. Rs. 744

D. Rs. 742

Answer: Option A

Solution (By JKExamLibrary)

A = 7200 × (1.05)² = 7200 × 1.1025 = 7938, CI = 7938 − 7200 = Rs. 738.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

If the compound interest on a certain sum for 2 years at 12% per annum is Rs. 1590, find the simple interest on the same sum at the same rate for the same period.

A. Rs. 1550

B. Rs. 1500

C. Rs. 1450

D. Rs. 1400

View Answer & Solution Discuss

Correct Answer: Option B

Explanation:
Effective compound interest rate = 12 + 12 + (1212)/100 = 25.44%. Simple interest rate = 12 * 2 = 24%. Given 25.44% of sum = 1590 => Sum = 1590 / 0.2544 = Rs. 6250. Simple Interest = 24% of 6250 = Rs. 1500.

This question belongs to: Maths Compound Interest