The simple interest on a sum for 2 years at 8% is Rs. 480. The compound interest on the same sum for 2 years at 8% is: MCQ with Answer and Explanation

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The simple interest on a sum for 2 years at 8% is Rs. 480. The compound interest on the same sum for 2 years at 8% is:

A. Rs. 499.20

B. Rs. 508.80

C. Rs. 512.00

D. Rs. 502.40

Answer: Option A

Solution (By JKExamLibrary)

P = 48000/(8×2) = 3000. CI = 3000[(1.08)² − 1] = 3000 × 0.1664 = Rs. 499.20.

This question belongs to: Maths Compound Interest

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Practice More Compound Interest Questions

Question #1 Report Error

Find the amount on Rs. 13500 at 8% per annum compound interest for 2 years.

A. Rs. 15900

B. Rs. 15746.40

C. Rs. 15800

D. Rs. 16000

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Correct Answer: Option B

Explanation:
A = 13500 × (1.08)² = 13500 × 1.1664 = 15746.40.

This question belongs to: Maths Compound Interest

Question #2 Report Error

Find the compound interest on Rs. 30000 for 1 year at 8% per annum, compounded quarterly.

A. Rs. 2510.00

B. Rs. 2550.50

C. Rs. 2472.96

D. Rs. 2400.00

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Correct Answer: Option C

Explanation:
Quarterly rate = 8 / 4 = 2%. Time = 4 quarters. Amount = 30000 * (1 + 2/100)^4 = 30000 * (1.02)^4 = 30000 * 1.08243216 = Rs. 32472.96. Compound Interest = 32472.96 - 30000 = Rs. 2472.96.

This question belongs to: Maths Compound Interest

Question #3 Report Error

What sum will amount to Rs. 13310 in 3 years at 10% per annum compound interest?

A. Rs. 10000

B. Rs. 10500

C. Rs. 9500

D. Rs. 9000

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Correct Answer: Option A

Explanation:
P = 13310 / (1.1)³ = 13310 / 1.331 = 10000.

This question belongs to: Maths Compound Interest

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