The difference between simple interest and compound interest on a certain sum of money for 2 years at 7% per annum is Rs. 49. 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 7% per annum is Rs. 49. Find the sum.

A. Rs. 9000

B. Rs. 12000

C. Rs. 11000

D. Rs. 10000

Answer: Option D

Difference for 2 years = P * (R/100)^2 => 49 = P * (7/100)^2 => 49 = P * (49 / 10000) => P = Rs. 10000.

This question belongs to: Maths Compound Interest

No comments yet. Be the first to start the discussion!

Question #1 Report Error

A sum of money at compound interest amounts to Rs. 1352 in 2 years and Rs. 1406.08 in 3 years. Find the sum.

A. Rs. 1300

B. Rs. 1350

C. Rs. 1250

D. Rs. 1200

Correct Answer: Option C

Explanation:
Rate = (1406.08/1352 − 1)×100 = 4%. P = 1352 / (1.04)² = 1352 / 1.0816 = 1250.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money at compound interest doubles in 4 years. In how many years will it become 8 times?

A. 16 years

B. 12 years

C. 20 years

D. 10 years

Correct Answer: Option B

Explanation:
2 times in 4 years, 8 = 2³ ⇒ 4 × 3 = 12 years.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The effective annual rate for 15% per annum compounded half-yearly is:

A. 15.75%

B. 15.56%

C. 15.50%

D. 15.25%

Correct Answer: Option B

Explanation:
Half-yearly rate 7.5%, (1.075)² = 1.155625, effective = 15.5625% ≈ 15.56%.

This question belongs to: Maths Compound Interest