The difference between simple interest and compound interest on a certain sum of money for 2 years at 8% per annum is Rs. 64. Find the sum. MCQ with Answer and Explanation

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The difference between simple interest and compound interest on a certain sum of money for 2 years at 8% per annum is Rs. 64. Find the sum.

A. Rs. 12000

B. Rs. 9000

C. Rs. 11000

D. Rs. 10000

Answer: Option D

Solution (By JKExamLibrary)

Difference for 2 years = P * (R/100)^2 => 64 = P * (8/100)^2 => 64 = P * (64 / 10000) => P = Rs. 10000.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

The compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 441. What would be the simple interest on the same sum at the same rate for the same time?

A. Rs. 430

B. Rs. 410

C. Rs. 435

D. Rs. 420

View Answer & Solution Discuss

Correct Answer: Option D

Explanation:
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Simple interest rate = 10 * 2 = 20%. Given 21% of sum = 441 => 1% of sum = 21. Simple Interest = 20% of sum = 20 * 21 = Rs. 420.

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. 416. What would be the simple interest on the same sum at the same rate for the same time?

A. Rs. 400

B. Rs. 412

C. Rs. 380

D. Rs. 410

View Answer & Solution Discuss

Correct Answer: Option A

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 = 416 => 1% of sum = 25. Simple Interest = 16% of sum = 16 * 25 = Rs. 400.

This question belongs to: Maths Compound Interest