If the compound interest on a sum for 2 years at 4% per annum is Rs. 102, the simple interest for the same period and rate is: MCQ with Answer and Explanation

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If the compound interest on a sum for 2 years at 4% per annum is Rs. 102, the simple interest for the same period and rate is:

A. Rs. 102

B. Rs. 96

C. Rs. 100

D. Rs. 98

Answer: Option C

Solution (By JKExamLibrary)

CI = P[(1.04)² − 1] = P × 0.0816 = 102 ⇒ P = 1250. SI = 1250 × 4 × 2/100 = 100.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

A sum of money becomes Rs. 24200 in 2 years and Rs. 26620 in 3 years at compound interest compounded annually. Find the sum.

A. Rs. 22000

B. Rs. 24000

C. Rs. 18000

D. Rs. 20000

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Correct Answer: Option D

Explanation:
Rate of interest = ((26620 - 24200) / 24200) * 100 = (2420 / 24200) * 100 = 10%. Principal P = 24200 / (1 + 10/100)^2 = 24200 / 1.21 = Rs. 20000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

Find the compound interest on Rs. 10000 for 1 year at 8% per annum, compounded quarterly.

A. Rs. 840.00

B. Rs. 850.50

C. Rs. 800.00

D. Rs. 824.32

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Correct Answer: Option D

Explanation:
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 10000 * (1 + 2/100)^4 = 10000 * (1.02)^4 = 10000 * 1.082432 = Rs. 10824.32. Compound Interest = 10824.32 - 10000 = Rs. 824.32.

This question belongs to: Maths Compound Interest