If the simple interest on a sum of money for 3 years at 5% per annum is Rs. 1200, find the compound interest on the same sum at the same rate for the same period. MCQ with Answer and Explanation

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If the simple interest on a sum of money for 3 years at 5% per annum is Rs. 1200, find the compound interest on the same sum at the same rate for the same period.

A. Rs. 1280.00

B. Rs. 1261.00

C. Rs. 1240.50

D. Rs. 1301.50

Answer: Option B

Solution (By JKExamLibrary)

Simple Interest for 1 year = 1200 / 3 = Rs. 400. Principal P = (1200 * 100) / (5 * 3) = Rs. 8000. Amount with compound interest = 8000 * (1 + 5/100)^3 = 8000 * 1.157625 = Rs. 9261. Compound Interest = 9261 - 8000 = Rs. 1261.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

A sum of money at compound interest amounts to Rs. 1352 in 2 years and Rs. 1406.08 in 3 years. Find the sum.

A. Rs. 1350

B. Rs. 1200

C. Rs. 1250

D. Rs. 1300

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Correct Answer: Option C

Explanation:
Rate = (1406.08/1352 − 1)×100 = 4%. P = 1352 / (1.04)² = 1352 / 1.0816 = 1250.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The compound interest on Rs. 3500 at 8% per annum for 2 years is:

A. Rs. 576.40

B. Rs. 592.00

C. Rs. 582.40

D. Rs. 588.00

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Correct Answer: Option C

Explanation:
A = 3500 × (1.08)² = 3500 × 1.1664 = 4082.40, CI = 4082.40 − 3500 = Rs. 582.40.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on Rs. 2600 at 10% per annum for 2 years is:

A. Rs. 572

B. Rs. 598

C. Rs. 520

D. Rs. 546

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Correct Answer: Option D

Explanation:
A = 2600 × 1.21 = 3146, CI = 3146 − 2600 = Rs. 546.

This question belongs to: Maths Compound Interest

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