The compound interest on a certain sum for 2 years at 10% per annum is Rs. 420. What would be the simple interest on the same sum at the same rate for the same time? 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. 420. What would be the simple interest on the same sum at the same rate for the same time?

A. Rs. 390

B. Rs. 400

C. Rs. 380

D. Rs. 410

Answer: Option B

Solution (By JKExamLibrary)

For 2 years at 10%, effective compound interest rate is 10 + 10 + (1010)/100 = 21%. Effective simple interest rate is 10 * 2 = 20%. Given 21% of sum = 420, then 1% of sum = 20. Simple Interest = 20% of sum = 20 * 20 = Rs. 400.

This question belongs to: Maths Compound Interest

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Question #1 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. 14%

C. 10%

D. 8%

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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

Question #2 Report Error

The compound interest on Rs. 5500 at 10% per annum for 2 years is:

A. Rs. 1210

B. Rs. 1155

C. Rs. 1265

D. Rs. 1320

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Correct Answer: Option B

Explanation:
A = 5500 × 1.21 = 6655, CI = 6655 − 5500 = Rs. 1155.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The effective annual rate for 9% per annum compounded half-yearly is:

A. 9.25%

B. 9.30%

C. 9.20%

D. 9.10%

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Correct Answer: Option C

Explanation:
Half-yearly rate 4.5%, (1.045)² = 1.092025, effective = 9.2025% ≈ 9.20%.

This question belongs to: Maths Compound Interest

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