The compound interest on a certain sum for 2 years at 10% per annum is Rs. 1260. Find the principal sum. MCQ with Answer and Explanation

The compound interest on a certain sum for 2 years at 10% per annum is Rs. 1260. Find the principal sum.

A. Rs. 6000

B. Rs. 6500

C. Rs. 7000

D. Rs. 5500

Answer: Option A

Solution (By JKExamLibrary)

Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Given 21% of P = 1260 => P = 1260 / 0.21 = Rs. 6000.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

The compound interest on Rs. 12000 at 5% per annum for 2 years is:

A. Rs. 1200

B. Rs. 1230

C. Rs. 1260

D. Rs. 1290

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Correct Answer: Option B

Explanation:
A = 12000 × (1.05)² = 12000 × 1.1025 = 13230, CI = 13230 − 12000 = Rs. 1230.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The compound interest on a certain sum for 2 years at 4% per annum is Rs. 816. Find the principal sum.

A. Rs. 11000

B. Rs. 9500

C. Rs. 10500

D. Rs. 10000

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Correct Answer: Option D

Explanation:
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Given 8.16% of P = 816 => P = 816 / 0.0816 = Rs. 10000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The difference between CI and SI on Rs. 7200 for 2 years at 10% is:

A. Rs. 60

B. Rs. 72

C. Rs. 68

D. Rs. 80

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Correct Answer: Option B

Explanation:
D = 7200 × 0.01 = Rs. 72.

This question belongs to: Maths Compound Interest

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