The difference between simple interest and compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 121. Find the sum. MCQ with Answer and Explanation

The difference between simple interest and compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 121. Find the sum.

A. Rs. 14000

B. Rs. 11000

C. Rs. 13000

D. Rs. 12100

Answer: Option D

Difference for 2 years = P * (R/100)^2 => 121 = P * (10/100)^2 => 121 = P * 0.01 => P = Rs. 12100.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The compound interest on Rs. 14000 at 10% per annum for 2 years is:

A. Rs. 3080

B. Rs. 3100

C. Rs. 2800

D. Rs. 2940

Correct Answer: Option D

Explanation:
A = 14000 × (1.1)² = 14000 × 1.21 = 16940, CI = 16940 − 14000 = Rs. 2940.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The effective annual rate for 12% per annum compounded half-yearly is:

A. 12.50%

B. 12.60%

C. 12.36%

D. 12.25%

Correct Answer: Option C

Explanation:
Effective = (1.06)² − 1 = 1.1236 − 1 = 12.36%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The simple interest on a sum for 2 years at 5% is Rs. 500. The compound interest on the same sum for 2 years at 5% is:

A. Rs. 525

B. Rs. 510

C. Rs. 512.50

D. Rs. 500

Correct Answer: Option C

Explanation:
P = 50000/(5×2) = 5000. CI = 5000[(1.05)² − 1] = 5000 × 0.1025 = Rs. 512.50.

This question belongs to: Maths Compound Interest