Find the difference between compound interest and simple interest on Rs. 5000 for 2 years at 8% per annum. MCQ with Answer and Explanation

Find the difference between compound interest and simple interest on Rs. 5000 for 2 years at 8% per annum.

A. Rs. 32

B. Rs. 40

C. Rs. 36

D. Rs. 42

Answer: Option A

Difference for 2 years = P * (R/100)^2 = 5000 * (8/100)^2 = 5000 * (64 / 10000) = Rs. 32.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

A sum doubles in 5 years at compound interest. In how many years will it become 4 times?

A. 12 years

B. 8 years

C. 10 years

D. 15 years

Correct Answer: Option C

Explanation:
Doubles in 5 years, so quadruple (2²) in 5 × 2 = 10 years.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money invested at compound interest doubles itself in 6 years. In how many years will it become 4 times of itself?

A. 18 years

B. 9 years

C. 15 years

D. 12 years

Correct Answer: Option D

Explanation:
The sum doubles (2^1) in 6 years. It will become 4 (2^2) times in 2 * 6 = 12 years.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The simple interest on a sum for 2 years at 6% is Rs. 360. The compound interest for the same period and rate is:

A. Rs. 378.00

B. Rs. 372.00

C. Rs. 375.00

D. Rs. 370.80

Correct Answer: Option D

Explanation:
P = 36000/(6×2) = 3000. CI = 3000[(1.06)² − 1] = 3000 × 0.1236 = Rs. 370.80.

This question belongs to: Maths Compound Interest