The difference between compound interest and simple interest on Rs. 2000 for 3 years at 5% per annum is: MCQ with Answer and Explanation

The difference between compound interest and simple interest on Rs. 2000 for 3 years at 5% per annum is:

A. Rs. 15.50

B. Rs. 16.00

C. Rs. 15.25

D. Rs. 16.50

Answer: Option C

CI − SI = P × (R/100)² × (3 + R/100) = 2000 × 0.0025 × 3.05 = 2000 × 0.007625 = Rs. 15.25.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The difference between simple interest and compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 36. Find the sum.

A. Rs. 15000

B. Rs. 12000

C. Rs. 16000

D. Rs. 14400

Correct Answer: Option D

Explanation:
Difference for 2 years = P * (R/100)^2 => 36 = P * (5/100)^2 => 36 = P * (25 / 10000) => P = (36 * 10000) / 25 = 14400.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The compound interest on a sum for 3 years at 10% is Rs. 993. The sum is:

A. Rs. 3600

B. Rs. 3000

C. Rs. 3300

D. Rs. 2700

Correct Answer: Option B

Explanation:
CI = P[(1.1)³ − 1] = P × 0.331 = 993 ⇒ P = 993 / 0.331 = 3000.

This question belongs to: Maths Compound Interest

Question #3 Report Error

In how many years will Rs. 800 amount to Rs. 968 at 10% per annum compound interest?

A. 2 years

B. 3 years

C. 2.5 years

D. 1.5 years

Correct Answer: Option A

Explanation:
800(1.1)^t = 968 ⇒ (1.1)^t = 1.21 = (1.1)² ⇒ t = 2.

This question belongs to: Maths Compound Interest