The simple interest on a sum for 2 years at 10% is Rs. 400. The compound interest on the same sum for 2 years at 10% is: MCQ with Answer and Explanation

The simple interest on a sum for 2 years at 10% is Rs. 400. The compound interest on the same sum for 2 years at 10% is:

A. Rs. 400

B. Rs. 420

C. Rs. 410

D. Rs. 430

Answer: Option B

P = 40000/(10×2) = 2000. CI = 2000[(1.1)² − 1] = 2000 × 0.21 = Rs. 420.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The difference between compound interest and simple interest on Rs. 1500 for 2 years at 10% per annum is:

A. Rs. 15

B. Rs. 20

C. Rs. 10

D. Rs. 25

Correct Answer: Option A

Explanation:
Difference = P × (R/100)² = 1500 × (0.1)² = 1500 × 0.01 = Rs. 15.

This question belongs to: Maths Compound Interest

Question #2 Report Error

The effective annual rate for 24% per annum compounded half-yearly is:

A. 26.50%

B. 26%

C. 25.44%

D. 25%

Correct Answer: Option C

Explanation:
Half-yearly rate 12%, (1.12)² = 1.2544, effective = 25.44%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money doubles itself in 8 years at compound interest. In how many years will it become four times of itself?

A. 20 years

B. 16 years

C. 24 years

D. 12 years

Correct Answer: Option B

Explanation:
The sum doubles (2^1) in 8 years. It will become 4 (2^2) times in 2 * 8 = 16 years.

This question belongs to: Maths Compound Interest