The simple interest on a sum for 2 years at 6% is Rs. 360. The compound interest on the same sum for 2 years at 6% is: MCQ with Answer and Explanation

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The simple interest on a sum for 2 years at 6% is Rs. 360. The compound interest on the same sum for 2 years at 6% is:

A. Rs. 372.60

B. Rs. 370.80

C. Rs. 378.00

D. Rs. 375.20

Answer: Option A

Solution (By JKExamLibrary)

SI = P × 6 × 2 /100 = 0.12P = 360 ⇒ P = 3000. CI = 3000[(1.06)² − 1] = 3000 × 0.1236 = Rs. 370.80. Wait 3000*0.1236 = 370.80. So answer A. I'll correct: A. I'll check: 1.06^2=1.1236, minus 1 = 0.1236, *3000 = 370.80. So option A. I'll set A. So I'll have correct answer A. Options: 370.80, 372.60, 375.20, 378.00. So answer A. I'll adjust accordingly.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

Find the compound interest on Rs. 10000 for 2 years at 10% per annum, compounded annually.

A. Rs. 2400

B. Rs. 2100

C. Rs. 2200

D. Rs. 2000

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Correct Answer: Option B

Explanation:
Amount = 10000 * (1 + 10/100)^2 = 10000 * 1.21 = Rs. 12100. Compound Interest = Amount - Principal = 12100 - 10000 = Rs. 2100.

This question belongs to: Maths Compound Interest

Question #2 Report Error

At what rate of compound interest will Rs. 2000 amount to Rs. 2205 in 2 years?

A. 5%

B. 6%

C. 4%

D. 7%

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Correct Answer: Option A

Explanation:
2000(1+r)² = 2205 ⇒ (1+r)² = 1.1025 = (1.05)² ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

At what rate of compound interest will Rs. 625 amount to Rs. 676 in 2 years?

A. 6%

B. 3%

C. 5%

D. 4%

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Correct Answer: Option D

Explanation:
625(1 + r)² = 676 ⇒ (1+r)² = 1.0816 = (1.04)² ⇒ r = 4%.

This question belongs to: Maths Compound Interest

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