The difference between the simple interest and compound interest on a certain sum of money for 2 years at 12% per annum is Rs. 72. Find the sum. MCQ with Answer and Explanation

The difference between the simple interest and compound interest on a certain sum of money for 2 years at 12% per annum is Rs. 72. Find the sum.

A. Rs. 4500

B. Rs. 5500

C. Rs. 5000

D. Rs. 6000

Answer: Option C

Difference for 2 years = P * (R/100)^2 => 72 = P * (12/100)^2 => 72 = P * (144 / 10000) => P = (72 * 10000) / 144 = 5000.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The effective annual rate for 12% per annum compounded half-yearly is:

A. 12.50%

B. 12.60%

C. 12.25%

D. 12.36%

Correct Answer: Option D

Explanation:
Effective = (1.06)² − 1 = 1.1236 − 1 = 12.36%.

This question belongs to: Maths Compound Interest

Question #2 Report Error

A sum of money at compound interest amounts to Rs. 16105 in 2 years and Rs. 17715.50 in 3 years. Find the sum.

A. Rs. 12000

B. Rs. 13000

C. Rs. 13310

D. Rs. 12500

Correct Answer: Option C

Explanation:
Rate = (17715.50/16105 − 1) × 100 = 10%. P = 16105 / 1.21 = 13310? 16105/1.21 = 13310 exactly. So answer D 13310.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money placed at compound interest becomes double of itself in 10 years. In how many years will it become 8 times of itself?

A. 20 years

B. 30 years

C. 40 years

D. 50 years

Correct Answer: Option B

Explanation:
The sum becomes 2^1 times in 10 years. It will become 8 (2^3) times in 3 * 10 = 30 years.

This question belongs to: Maths Compound Interest