The simple interest on a sum for 2 years at 9% is Rs. 540. The compound interest on the same sum for 2 years at 9% is: MCQ with Answer and Explanation

The simple interest on a sum for 2 years at 9% is Rs. 540. The compound interest on the same sum for 2 years at 9% is:

A. Rs. 567.00

B. Rs. 570.00

C. Rs. 564.30

D. Rs. 561.60

Answer: Option C

P = 54000/(9×2) = 3000. CI = 3000[(1.09)² − 1] = 3000 × 0.1881 = 564.30.

This question belongs to: Maths Compound Interest

No comments yet. Be the first to start the discussion!

Question #1 Report Error

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. 508.80

B. Rs. 502.40

C. Rs. 499.20

D. Rs. 512.00

Correct Answer: Option C

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

This question belongs to: Maths Compound Interest

Question #2 Report Error

In what time will Rs. 1000 amount to Rs. 1331 at 10% per annum compound interest?

A. 2.5 years

B. 3 years

C. 2 years

D. 3.5 years

Correct Answer: Option B

Explanation:
1000 × (1.1)^t = 1331 ⇒ (1.1)^t = 1.331 = (1.1)³ ⇒ t = 3 years.

This question belongs to: Maths Compound Interest

Question #3 Report Error

A sum of money placed at compound interest becomes double of itself in 4 years. In how many years will it become 32 times of itself?

A. 28 years

B. 20 years

C. 16 years

D. 24 years

Correct Answer: Option B

Explanation:
The sum becomes 2^1 times in 4 years. It will become 32 (2^5) times in 5 * 4 = 20 years.

This question belongs to: Maths Compound Interest