The compound interest on a certain sum for 2 years at 12% per annum is Rs. 1272. Find the principal sum. MCQ with Answer and Explanation

The compound interest on a certain sum for 2 years at 12% per annum is Rs. 1272. Find the principal sum.

A. Rs. 5200

B. Rs. 5000

C. Rs. 5400

D. Rs. 4800

Answer: Option B

Effective rate of compound interest for 2 years at 12% = 12 + 12 + (1212)/100 = 25.44%. Given 25.44% of P = 1272 => P = 1272 / 0.2544 = Rs. 5000.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

At what rate percent per annum will Rs. 32000 amount to Rs. 37232 in 3 years, compound interest compounded annually?

A. 8%

B. 5%

C. 6%

D. 4%

Correct Answer: Option B

Explanation:
Amount/Principal = 37232 / 32000 = 4654 / 4000 = 9261 / 8000 = (21 / 20)^3. Therefore, 1 + R/100 = 21/20 => R/100 = 1/20 => R = 5%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money placed at compound interest doubles itself in 4 years. In how many years will it amount to 8 times itself?

A. 8 years

B. 16 years

C. 12 years

D. 10 years

Correct Answer: Option C

Explanation:
2 times in 4 years, 8 = 2³ ⇒ 4 × 3 = 12 years.

This question belongs to: Maths Compound Interest

Question #3 Report Error

If the compound interest on a sum for 2 years at 5% is Rs. 307.50, the simple interest on the same sum for 2 years at 5% is:

A. Rs. 300

B. Rs. 310

C. Rs. 290

D. Rs. 280

Correct Answer: Option A

Explanation:
CI = P × 0.1025 = 307.50 ⇒ P = 3000. SI = 3000 × 5 × 2 / 100 = Rs. 300.

This question belongs to: Maths Compound Interest