The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs. 217. 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. 217. Find the sum.

A. Rs. 8000

B. Rs. 6500

C. Rs. 7500

D. Rs. 7000

Answer: Option D

Solution (By JKExamLibrary)

Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 217 = P * (10/100)^2 * (3 + 10/100) => 217 = P * (1/100) * (3.1) => 217 = P * 0.031 => P = 217 / 0.031 = Rs. 7000.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

Find the compound interest on Rs. 50000 for 1 year at 8% per annum, compounded quarterly.

A. Rs. 4000.00

B. Rs. 4310.20

C. Rs. 4200.00

D. Rs. 4121.61

View Answer & Solution Discuss

Correct Answer: Option D

Explanation:
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 50000 * (1 + 2/100)^4 = 50000 * (1.02)^4 = 50000 * 1.08243216 = Rs. 54121.61. Compound Interest = 54121.61 - 50000 = Rs. 4121.61.

This question belongs to: Maths Compound Interest