The compound interest on a certain sum for 2 years at 10% per annum is Rs. 210. Find the principal sum. MCQ with Answer and Explanation

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The compound interest on a certain sum for 2 years at 10% per annum is Rs. 210. Find the principal sum.

A. Rs. 1050

B. Rs. 950

C. Rs. 1100

D. Rs. 1000

Answer: Option D

Solution (By JKExamLibrary)

Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Given 21% of P = 210 => P = 210 / 0.21 = Rs. 1000.

This question belongs to: Maths Compound Interest

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Question #1

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A sum of money at compound interest becomes 3 times in 4 years. In how many years will it become 9 times?

A. 10 years

B. 6 years

C. 12 years

D. 8 years

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Correct Answer: Option D

Explanation:
3 times in 4 years, 9=3² ⇒ 4×2=8 years.

This question belongs to: Maths Compound Interest

Question #2

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Find the compound interest on Rs. 19600 at 10% per annum for 2 years.

A. Rs. 4312

B. Rs. 3920

C. Rs. 4116

D. Rs. 4508

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Correct Answer: Option C

Explanation:
A = 19600 × 1.21 = 23716, CI = 23716 − 19600 = Rs. 4116.

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Question #3

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What sum will amount to Rs. 10816 in 2 years at 4% compound interest?

A. Rs. 10000

B. Rs. 10400

C. Rs. 9800

D. Rs. 10200

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Correct Answer: Option A

Explanation:
P = 10816 / (1.04)² = 10816 / 1.0816 = 10000.

This question belongs to: Maths Compound Interest

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