Find the compound interest on Rs. 8500 at 8% per annum for 2 years. MCQ with Answer and Explanation

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Find the compound interest on Rs. 8500 at 8% per annum for 2 years.

A. Rs. 1414.40

B. Rs. 1420

C. Rs. 1430

D. Rs. 1440

Answer: Option A

Solution (By JKExamLibrary)

A = 8500 × (1.08)² = 8500 × 1.1664 = 9914.40, CI = 9914.40 − 8500 = Rs. 1414.40.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

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

A. Rs. 200

B. Rs. 220

C. Rs. 205

D. Rs. 210

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Correct Answer: Option C

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

This question belongs to: Maths Compound Interest

Question #2 Report Error

The difference between CI and SI on Rs. 4100 for 2 years at 5% is:

A. Rs. 9.50

B. Rs. 10.25

C. Rs. 11.00

D. Rs. 8.50

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Correct Answer: Option B

Explanation:
D = 4100 × 0.0025 = Rs. 10.25.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on a certain sum for 2 years at 10% per annum is Rs. 1260. Find the principal sum.

A. Rs. 7000

B. Rs. 6500

C. Rs. 5500

D. Rs. 6000

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Correct Answer: Option D

Explanation:
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Given 21% of P = 1260 => P = 1260 / 0.21 = Rs. 6000.

This question belongs to: Maths Compound Interest

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