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. MCQ with Answer and Explanation

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. 16000

B. Rs. 12000

C. Rs. 14400

D. Rs. 15000

Answer: Option C

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

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Question #1 Report Error

The compound interest on a sum for 2 years at 10% compounded half-yearly is Rs. 4310.12. The sum is:

A. Rs. 21000

B. Rs. 18000

C. Rs. 19000

D. Rs. 20000

Correct Answer: Option D

Explanation:
CI = P[(1.05)⁴ − 1] = P × 0.21550625 = 4310.125 ⇒ P = 4310.125 / 0.21550625 = 20000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

At what rate percent compound interest will Rs. 5000 amount to Rs. 6050 in 2 years?

A. 9%

B. 12%

C. 8%

D. 10%

Correct Answer: Option D

Explanation:
5000(1+r)² = 6050 ⇒ (1+r)² = 1.21 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The difference between compound interest and simple interest on Rs. 1600 for 2 years at 5% is:

A. Rs. 4.80

B. Rs. 3.20

C. Rs. 5.00

D. Rs. 4.00

Correct Answer: Option D

Explanation:
D = 1600 × (0.05)² = 1600 × 0.0025 = Rs. 4.

This question belongs to: Maths Compound Interest