The compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 1050. 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 of money for 2 years at 10% per annum is Rs. 1050. What would be the simple interest on the same sum at the same rate for the same time?

A. Rs. 1000

B. Rs. 1040

C. Rs. 1025

D. Rs. 950

Answer: Option A

Solution (By JKExamLibrary)

Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Simple interest rate = 10 * 2 = 20%. Given 21% of sum = 1050 => 1% of sum = 50. Simple Interest = 20% of sum = 20 * 50 = Rs. 1000.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

A sum of money amounts to Rs. 10584 in 2 years and Rs. 11113.20 in 3 years at compound interest. Find the sum.

A. Rs. 9400

B. Rs. 9000

C. Rs. 9200

D. Rs. 9600

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Correct Answer: Option D

Explanation:
Rate = (11113.20/10584 − 1) × 100 = 5%. P = 10584 / 1.1025 = 9600.

This question belongs to: Maths Compound Interest

Question #2 Report Error

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

A. Rs. 10000

B. Rs. 9800

C. Rs. 10200

D. Rs. 10400

View Answer & Solution Discuss

Correct Answer: Option A

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

This question belongs to: Maths Compound Interest

Question #3 Report Error

The difference between CI and SI on Rs. 12000 for 2 years at 5% is:

A. Rs. 30

B. Rs. 25

C. Rs. 40

D. Rs. 35

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
Difference = 12000 × (0.05)² = 12000 × 0.0025 = Rs. 30.

This question belongs to: Maths Compound Interest

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