The compound interest on a certain sum of money for 2 years at 4% per annum is Rs. 204. 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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Question #1
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The compound interest on Rs. 3900 at 10% per annum for 2 years is:
Correct Answer: Option C
Explanation:
A = 3900 × 1.21 = 4719, CI = 4719 − 3900 = Rs. 819.
A = 3900 × 1.21 = 4719, CI = 4719 − 3900 = Rs. 819.
This question belongs to:
Maths
Compound Interest
Question #2
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What sum will amount to Rs. 2420 in 2 years at 10% per annum compound interest?
Correct Answer: Option A
Explanation:
P = 2420 / (1.1)² = 2420 / 1.21 = 2000.
P = 2420 / (1.1)² = 2420 / 1.21 = 2000.
This question belongs to:
Maths
Compound Interest
Question #3
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If the compound interest on a certain sum for 2 years at 4% per annum is Rs. 102, find the simple interest on the same sum at the same rate for the same period.
Correct Answer: Option C
Explanation:
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Simple interest rate = 4 * 2 = 8%. Given 8.16% of sum = 102, then 8% of sum = (102 / 8.16) * 8 = 12.5 * 8 = Rs. 100.
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Simple interest rate = 4 * 2 = 8%. Given 8.16% of sum = 102, then 8% of sum = (102 / 8.16) * 8 = 12.5 * 8 = Rs. 100.
This question belongs to:
Maths
Compound Interest
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