Multiple Choice QuestionsThe difference between compound interest and simple interest on a certain sum of money for 2 years at 5% per annum is ₹ 41/-. What is the sum of money?
₹ 7200
₹ 9600
₹ 16400
₹ 16400
A sum of ₹ 2,000/- amounts to ₹ 4,000/- in two years at compound interest. In how many years does the same amount become ₹ 8,000/-?
2
4
6
6
The compound interest on Rs. 4000 for 4 years at 10% per annum will be
Rs. 1856. 40
Rs. 1600
Rs . 1856
Rs . 1856
A sum of money is invested at 20% compound interest (compounded annually). It would fetch Rs. 723 more if interest is compounded half-yearly. The sum is
Rs. 15,000
Rs. 30,000
Rs. 20,000
Rs. 20,000
B.
Rs. 30,000
Shortcut Method: Go with option and check it..
If we suppose or take second option i.e Rs 30,000 as principal, then check it.
If compound interest is annually for 2 years on Rs, 30000 then interest would be:
For first year 20% on 30,000 = Rs 6000
For second year 20% on (30,000 + 6000 = 36000) = 7200
Total interest = (6000 + 7200) = Rs 13200.
When compound interest is half-yearly, then rate would be half and time would be double the given.
So,
For first year 10% on 30,000 = 3000 ...(i)
For second year 10% on (30,000 + 3000 = 33000) = Rs 3300...(ii)
For third year 10% on (33,000 + 3300 = 36300) = Rs 3630 ...(iii)
For fourth year 10% on (36300 + 3630 = 39930) = Rs 3993 ...(iv)
Adding (i), (ii), (iii), (iv)
Interest would be Rs (3000 + 3300 + 3630 + 3993) = Rs 13,923
Difference of both the interest is Rs (13, 923 - 13200) = Rs 723
When Principal = ₹ S, rate of interest = 2r % p.a., then a person will get after 3 years at compound interest
The sum of money which becomes ₹ 2420 at 10% rate of compound interest after two years is
₹ 2000
₹ 1000
₹ 2500
₹ 2500
On a certain principal, the compound interest compounded annually for the second year at 10% per annum is
₹ 1250
₹ 1000
₹ 1200
₹ 1200
The compound interest on a certain sum of money for 2 years at 5% is ₹328, then the sum is
₹ 3000
₹ 3600
₹ 3200
₹ 3400
A man borrows money at 3% per annum interest payable yearly and lend it immediately at 5% interest (compound) payable half-yearly and thereby gains ₹ 330 at the end of the year. The sum borrowed is
₹ 17000
₹ 16500
₹ 15000
₹ 15000
If the compound interest on a sum for 2 years at 
is ₹ 510, the simple interest on the same sum at the same rate for the same period of time is
₹ 400
₹ 450
₹ 460
₹ 460
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