The difference between simple interest and compound interest on a certain sum of money for 3 years at 20% per annum is Rs. 384. 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 20% per annum is Rs. 384. Find the sum.

A. Rs. 3000

B. Rs. 3500

C. Rs. 4000

D. Rs. 2500

Answer: Option A

Solution (By JKExamLibrary)

Difference for 3 years = P * (R/100)^2 * (3 + R/100) => 384 = P * (20/100)^2 * (3 + 20/100) => 384 = P * (1/25) * (3.2) => 384 = P * 0.128 => P = 384 / 0.128 = Rs. 3000.

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. 2500 amount to Rs. 2756.25 at 5% per annum compound interest?

A. 2 years

B. 1.5 years

C. 2.5 years

D. 3 years

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
2500(1.05)^t = 2756.25 ⇒ (1.05)^t = 1.1025 ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money at compound interest becomes 4 times in 2 years. In how many years will it become 16 times?

A. 6 years

B. 3 years

C. 5 years

D. 4 years

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Correct Answer: Option D

Explanation:
4 times in 2 years; 16 = 4², so time = 2 × 2 = 4 years.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The difference between CI and SI on Rs. 3600 for 2 years at 5% is:

A. Rs. 9.00

B. Rs. 10.00

C. Rs. 8.00

D. Rs. 7.20

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
D = 3600 × 0.0025 = Rs. 9.

This question belongs to: Maths Compound Interest

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