If the simple interest on a sum for 3 years at 10% is Rs. 600, the compound interest on the same sum for 2 years at the same rate is: MCQ with Answer and Explanation

If the simple interest on a sum for 3 years at 10% is Rs. 600, the compound interest on the same sum for 2 years at the same rate is:

A. Rs. 410

B. Rs. 440

C. Rs. 400

D. Rs. 420

Answer: Option D

SI = P × 10 × 3 / 100 = 0.3P = 600 ⇒ P = 2000. CI for 2 years = 2000[(1.1)² − 1] = 2000 × 0.21 = Rs. 420.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

In how many years will Rs. 1000 amount to Rs. 1157.625 at 5% per annum compound interest?

A. 2 years

B. 2.5 years

C. 3 years

D. 3.5 years

Correct Answer: Option C

Explanation:
1000(1.05)^t = 1157.625 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money amounts to Rs. 10404 in 2 years at 2% compound interest. Find the sum.

A. Rs. 10100

B. Rs. 10000

C. Rs. 9900

D. Rs. 9800

Correct Answer: Option B

Explanation:
P = 10404 / (1.02)² = 10404 / 1.0404 = 10000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

At what rate percent per annum will Rs. 40000 amount to Rs. 48400 in 2 years, compound interest compounded annually?

A. 12%

B. 8%

C. 10%

D. 14%

Correct Answer: Option C

Explanation:
Amount/Principal = 48400 / 40000 = 121 / 100 = (11 / 10)^2. Therefore, 1 + R/100 = 11/10 => R/100 = 1/10 => R = 10%.

This question belongs to: Maths Compound Interest