The difference between compound interest and simple interest on Rs. 5000 at 10% for 3 years is: MCQ with Answer and Explanation

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The difference between compound interest and simple interest on Rs. 5000 at 10% for 3 years is:

A. Rs. 155

B. Rs. 165

C. Rs. 170

D. Rs. 160

Answer: Option A

Solution (By JKExamLibrary)

D = 5000 × (0.1)² × (3 + 0.1) = 5000 × 0.01 × 3.1 = 155.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

The difference between CI and SI on Rs. 7700 for 2 years at 10% is:

A. Rs. 80

B. Rs. 74

C. Rs. 70

D. Rs. 77

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Correct Answer: Option D

Explanation:
D = 7700 × 0.01 = Rs. 77.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The compound interest on a certain sum of money for 2 years at 8% per annum is Rs. 832. What would be the simple interest on the same sum at the same rate for the same time?

A. Rs. 780

B. Rs. 810

C. Rs. 820

D. Rs. 800

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Correct Answer: Option D

Explanation:
Effective rate of compound interest for 2 years at 8% = 8 + 8 + (88)/100 = 16.64%. Simple interest rate = 8 * 2 = 16%. Given 16.64% of sum = 832 => 1% of sum = 50. Simple Interest = 16% of sum = 16 * 50 = Rs. 800.

This question belongs to: Maths Compound Interest

Question #3 Report Error

Find the compound interest on Rs. 10000 for 1 year at 20% per annum, compounded quarterly.

A. Rs. 2000.00

B. Rs. 2250.00

C. Rs. 2155.06

D. Rs. 2200.00

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Correct Answer: Option C

Explanation:
Quarterly rate = 20 / 4 = 5%. Time = 4 quarters. Amount = 10000 * (1 + 5/100)^4 = 10000 * (1.05)^4 = 10000 * 1.21550625 = Rs. 12155.06. Compound Interest = 12155.06 - 10000 = Rs. 2155.06.

This question belongs to: Maths Compound Interest

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