If the compound interest on a sum for 2 years at 10% is Rs. 840, the simple interest on the same sum for 2 years at the same rate is: MCQ with Answer and Explanation

If the compound interest on a sum for 2 years at 10% is Rs. 840, the simple interest on the same sum for 2 years at the same rate is:

A. Rs. 780

B. Rs. 760

C. Rs. 820

D. Rs. 800

Answer: Option D

CI = P[(1.1)² − 1] = 0.21P = 840 ⇒ P = 4000. SI = 4000 × 10 × 2 / 100 = 800.

This question belongs to: Maths Compound Interest

No comments yet. Be the first to start the discussion!

Question #1 Report Error

At what rate percent per annum compound interest will Rs. 400 amount to Rs. 484 in 2 years?

A. 10%

B. 15%

C. 12%

D. 8%

Correct Answer: Option A

Explanation:
400(1 + r)² = 484 ⇒ (1+r)² = 1.21 ⇒ 1+r = 1.1 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The simple interest on a sum for 2 years at 10% is Rs. 400. The compound interest on the same sum for 2 years at 10% is:

A. Rs. 400

B. Rs. 430

C. Rs. 420

D. Rs. 410

Correct Answer: Option C

Explanation:
P = 40000/(10×2) = 2000. CI = 2000[(1.1)² − 1] = 2000 × 0.21 = Rs. 420.

This question belongs to: Maths Compound Interest

Question #3 Report Error

At what rate percent per annum will Rs. 5000 amount to Rs. 5618 in 2 years at compound interest?

A. 8%

B. 7%

C. 6%

D. 5%

Correct Answer: Option C

Explanation:
5000(1+r)² = 5618 ⇒ (1+r)² = 1.1236 = (1.06)² ⇒ r = 6%.

This question belongs to: Maths Compound Interest