The compound interest on a certain sum for 2 years at 12% per annum is Rs. 508.80. 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. 508.80. Find the principal sum.

A. Rs. 1800

B. Rs. 2200

C. Rs. 2400

D. Rs. 2000

Answer: Option D

Effective rate of compound interest for 2 years at 12% = 12 + 12 + (1212)/100 = 25.44%. Given 25.44% of P = 508.80 => P = 508.80 / 0.2544 = Rs. 2000.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The difference between CI and SI on a sum for 2 years at 10% is Rs. 150. The sum is:

A. Rs. 15000

B. Rs. 13000

C. Rs. 14000

D. Rs. 12000

Correct Answer: Option A

Explanation:
D = P × 0.01 = 150 ⇒ P = 15000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

At what rate percent compound interest will Rs. 1600 amount to Rs. 1852.20 in 3 years?

A. 7%

B. 6%

C. 4%

D. 5%

Correct Answer: Option D

Explanation:
1600(1+r)³ = 1852.20 ⇒ (1+r)³ = 1.157625 = (1.05)³ ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The difference between CI and SI on Rs. 1000 for 2 years at 10% is:

A. Rs. 9

B. Rs. 10

C. Rs. 8

D. Rs. 11

Correct Answer: Option B

Explanation:
D = 1000 × 0.01 = Rs. 10.

This question belongs to: Maths Compound Interest