The simple interest on a sum for 2 years at 6% is Rs. 480. The compound interest on the same sum for 2 years at 6% is: MCQ with Answer and Explanation

The simple interest on a sum for 2 years at 6% is Rs. 480. The compound interest on the same sum for 2 years at 6% is:

A. Rs. 499.20

B. Rs. 508.80

C. Rs. 504.00

D. Rs. 494.40

Answer: Option D

P = 48000/(6×2) = 4000. CI = 4000[(1.06)² − 1] = 4000 × 0.1236 = Rs. 494.40.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The simple interest on a sum for 2 years at 6% is Rs. 720. The compound interest on the same sum for 2 years at 6% is:

A. Rs. 741.60

B. Rs. 756.00

C. Rs. 763.20

D. Rs. 748.80

Correct Answer: Option A

Explanation:
P = 72000/(6×2) = 6000. CI = 6000 × 0.1236 = Rs. 741.60.

This question belongs to: Maths Compound Interest

Question #2 Report Error

Find the compound interest on Rs. 20000 at 10% per annum for 1.5 years compounded half-yearly.

A. Rs. 3100

B. Rs. 3250

C. Rs. 3152.50

D. Rs. 3200

Correct Answer: Option C

Explanation:
Half-yearly rate 5%, n=3. A = 20000 × (1.05)³ = 20000 × 1.157625 = 23152.50, CI = 23152.50 − 20000 = Rs. 3152.50.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money placed at compound interest doubles itself in 4 years. In how many years will it amount to 8 times itself?

A. 10 years

B. 12 years

C. 16 years

D. 8 years

Correct Answer: Option B

Explanation:
2 times in 4 years, 8 = 2³ ⇒ 4 × 3 = 12 years.

This question belongs to: Maths Compound Interest