The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs. 186. 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 3 years at 10% per annum is Rs. 186. Find the sum.

A. Rs. 6000

B. Rs. 6500

C. Rs. 5500

D. Rs. 7000

Answer: Option A

Solution (By JKExamLibrary)

Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 186 = P * (10/100)^2 * (3 + 10/100) => 186 = P * (1/100) * (3.1) => 186 = P * 0.031 => P = 186 / 0.031 = Rs. 6000.

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 5% per annum is Rs. 328. What would be the simple interest on the same sum at the same rate for the same time?

A. Rs. 320

B. Rs. 324

C. Rs. 326

D. Rs. 310

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
Effective rate of compound interest for 2 years at 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 328 => 1% of sum = 32. Simple Interest = 10% of sum = 10 * 32 = Rs. 320.

This question belongs to: Maths Compound Interest

Question #2 Report Error

If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what will be the compound interest on the same sum at the same rate for the same time?

A. Rs. 51.25

B. Rs. 53.50

C. Rs. 52.00

D. Rs. 50.50

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
Simple Interest for 1 year = 50 / 2 = Rs. 25. Compound interest for 2 years includes the simple interest plus interest on the first year's interest. Extra interest = 5% of 25 = Rs. 1.25. Total compound interest = 50 + 1.25 = Rs. 51.25.

This question belongs to: Maths Compound Interest