The simple interest on a sum for 3 years at 10% is Rs. 900. The compound interest on the same sum for 2 years at 10% is: MCQ with Answer and Explanation

The simple interest on a sum for 3 years at 10% is Rs. 900. The compound interest on the same sum for 2 years at 10% is:

A. Rs. 630

B. Rs. 660

C. Rs. 600

D. Rs. 690

Answer: Option A

P = 90000/(10×3) = 3000. CI = 3000 × 0.21 = 630.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

Find the compound interest on Rs. 12000 at 8% per annum for 1 year compounded half-yearly.

A. Rs. 998.40

B. Rs. 960

C. Rs. 988.80

D. Rs. 979.20

Correct Answer: Option D

Explanation:
Half-yearly rate 4%, n=2. A = 12000 × (1.04)² = 12000 × 1.0816 = 12979.20, CI = 12979.20 − 12000 = Rs. 979.20.

This question belongs to: Maths Compound Interest

Question #2 Report Error

In how many years will Rs. 4000 amount to Rs. 4410 at 5% per annum compound interest?

A. 1 year

B. 2.5 years

C. 2 years

D. 1.5 years

Correct Answer: Option C

Explanation:
4000(1.05)^t = 4410 ⇒ (1.05)^t = 1.1025 ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on a sum for 3 years at 5% is Rs. 788.125. The sum is:

A. Rs. 5500

B. Rs. 5000

C. Rs. 6000

D. Rs. 4500

Correct Answer: Option B

Explanation:
CI = P[(1.05)³ − 1] = P × 0.157625 = 788.125 ⇒ P = 788.125 / 0.157625 = 5000.

This question belongs to: Maths Compound Interest