The simple interest on a sum for 2 years at 12% is Rs. 720. The compound interest on the same sum for 2 years at 12% is: MCQ with Answer and Explanation

The simple interest on a sum for 2 years at 12% is Rs. 720. The compound interest on the same sum for 2 years at 12% is:

A. Rs. 752.64

B. Rs. 760.00

C. Rs. 763.20

D. Rs. 768.00

Answer: Option C

P = 72000/(12×2) = 3000. CI = 3000[(1.12)² − 1] = 3000 × 0.2544 = 763.20.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The difference between simple interest and compound interest on a certain sum of money for 2 years at 8% per annum is Rs. 64. Find the sum.

A. Rs. 12000

B. Rs. 9000

C. Rs. 11000

D. Rs. 10000

Correct Answer: Option D

Explanation:
Difference for 2 years = P * (R/100)^2 => 64 = P * (8/100)^2 => 64 = P * (64 / 10000) => P = Rs. 10000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

At what rate percent compound interest will Rs. 2700 amount to Rs. 3267 in 2 years?

A. 15%

B. 8%

C. 12%

D. 10%

Correct Answer: Option D

Explanation:
2700(1+r)² = 3267 ⇒ (1+r)² = 1.21 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The effective annual rate for 20% per annum compounded half-yearly is:

A. 21.5%

B. 21%

C. 20.5%

D. 22%

Correct Answer: Option B

Explanation:
Half-yearly rate 10%, (1.1)² = 1.21, effective = 21%.

This question belongs to: Maths Compound Interest