The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs. 31. 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. 31. Find the sum.

A. Rs. 800

B. Rs. 1500

C. Rs. 1000

D. Rs. 1200

Answer: Option C

Solution (By JKExamLibrary)

Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 31 = P * (10/100)^2 * (3 + 10/100) => 31 = P * (1/100) * (3.1) => 31 = P * 0.031 => P = 31 / 0.031 = Rs. 1000.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

In how many years will Rs. 2000 amount to Rs. 2205 at 5% per annum compound interest?

A. 2 years

B. 2.5 years

C. 1.5 years

D. 3 years

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Correct Answer: Option A

Explanation:
2000(1.05)^t = 2205 ⇒ (1.05)^t = 1.1025 = (1.05)² ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #2 Report Error

Find the amount on Rs. 13500 at 8% per annum compound interest for 2 years.

A. Rs. 15746.40

B. Rs. 15900

C. Rs. 15800

D. Rs. 16000

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Correct Answer: Option A

Explanation:
A = 13500 × (1.08)² = 13500 × 1.1664 = 15746.40.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on Rs. 14000 at 10% per annum for 2 years is:

A. Rs. 2800

B. Rs. 3100

C. Rs. 3080

D. Rs. 2940

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Correct Answer: Option D

Explanation:
A = 14000 × (1.1)² = 14000 × 1.21 = 16940, CI = 16940 − 14000 = Rs. 2940.

This question belongs to: Maths Compound Interest

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