Question : On a certain sum of money, the simple interest for 2 years is Rs. 350 at the rate of 4% per annum. It was invested at compound interest at the same rate for the same duration as before, how much more interest would be earned?
Option 1: Rs. 3.50
Option 2: Rs. 7
Option 3: Rs. 14
Option 4: Rs. 35
Correct Answer: Rs. 7
Solution : The difference between simple and compound interest for 2 years equals interest on the first year's interest. Given: Simple Interest for 2 years = Rs. 350 So, interest for the first year = Rs. 175 $\therefore$ The difference between simple and compound interest for 2 years = 4% of 175 = Rs. 7 Hence, the correct answer is Rs. 7
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Question : John invested a sum of money at an annual simple interest rate of 10%. At the end of four years, the amount invested plus interest earned is Rs. 770. The amount invested was:
Option 1: Rs. 650
Option 2: Rs. 350
Option 3: Rs. 550
Option 4: Rs. 500
Question : On a certain sum, the difference between compound interest and simple interest at 10% per annum for 2 years is Rs.250. The sum is _________.
Option 1: Rs.25,450
Option 2: Rs.26,550
Option 3: Rs.25,000
Option 4: Rs.26,000
Question : Find the difference between compound interest and simple interest when a sum of Rs. 15,625 is invested for 3 years at 4% per annum.
Option 1: Rs. 76
Option 2: Rs. 96
Option 3: Rs. 56
Option 4: Rs. 86
Question : The simple interest on a sum of money for 3 years is Rs. 240 and the compound interest on the same sum at the same rate for 2 years is Rs. 170. The rate of interest is:
Option 1: $8$%
Option 2: $29\frac{1}{6}$%
Option 3: $12\frac{1}{2}$%
Option 4: $5\frac{5}{17}$%
Question : The simple interest on a sum of money at 10% per annum for 2 years is 8,100. Compounded annually, what would be the compound interest (in ) on the same sum for the same period at the same rate of interest?
Option 1: 8,100
Option 2: 8,505
Option 3: 8,715
Option 4: 9,000
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