The simple interest on a sum for 3 years at 5% is Rs. 375. The compound interest on the same sum for 2 years at 5% is: MCQ with Answer and Explanation

The simple interest on a sum for 3 years at 5% is Rs. 375. The compound interest on the same sum for 2 years at 5% is:

A. Rs. 250

B. Rs. 256.25

C. Rs. 260

D. Rs. 262.50

Answer: Option B

P = 37500/(5×3) = 2500. CI = 2500[(1.05)² − 1] = 2500 × 0.1025 = Rs. 256.25.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The compound interest on a sum for 2 years at 6% is Rs. 370.80. The sum is:

A. Rs. 3400

B. Rs. 2800

C. Rs. 3000

D. Rs. 3200

Correct Answer: Option C

Explanation:
CI = P × 0.1236 = 370.80 ⇒ P = 3000.

This question belongs to: Maths Compound Interest

Question #2 Report Error

At what rate percent compound interest will Rs. 6000 amount to Rs. 7260 in 2 years?

A. 8%

B. 12%

C. 10%

D. 15%

Correct Answer: Option C

Explanation:
6000(1+r)² = 7260 ⇒ (1+r)² = 1.21 ⇒ r = 10%.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The compound interest on Rs. 500 for 2 years at 4% per annum is:

A. Rs. 41.60

B. Rs. 40.80

C. Rs. 40.00

D. Rs. 42.40

Correct Answer: Option B

Explanation:
A = 500 × (1.04)² = 500 × 1.0816 = 540.80, CI = 540.80 − 500 = Rs. 40.80.

This question belongs to: Maths Compound Interest