The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs. 620. 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. 620. Find the sum.

A. Rs. 24000

B. Rs. 18000

C. Rs. 22000

D. Rs. 20000

Answer: Option D

Solution (By JKExamLibrary)

Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 620 = P * (10/100)^2 * (3 + 10/100) => 620 = P * (1/100) * (3.1) => 620 = P * 0.031 => P = 620 / 0.031 = Rs. 20000.

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 sum for 2 years at 6% is Rs. 370.80. The sum is:

A. Rs. 3000

B. Rs. 3200

C. Rs. 3400

D. Rs. 2800

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
CI = P × 0.1236 = 370.80 ⇒ P = 3000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The compound interest on Rs. 6000 at 5% per annum for 2 years is:

A. Rs. 630

B. Rs. 600

C. Rs. 615

D. Rs. 645

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Correct Answer: Option C

Explanation:
A = 6000 × 1.1025 = 6615, CI = 6615 − 6000 = Rs. 615.

This question belongs to: Maths Compound Interest

Question #3 Report Error

Find the amount on Rs. 6250 at 8% per annum compound interest for 2 years.

A. Rs. 7300

B. Rs. 7320

C. Rs. 7290

D. Rs. 7350

View Answer & Solution Discuss

Correct Answer: Option C

Explanation:
A = 6250 × (1.08)² = 6250 × 1.1664 = 7290.

This question belongs to: Maths Compound Interest

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