Selected MCQ

Current Question
A financier claims simple interest but charges differently. What is the real rate?
  • A. 10%
  • B. 10.25%
  • C. 10.50%
  • D. None
Correct Answer: B
Explanation:
Effective rate calculation.
Related Question 1
There is a 60% increase in a sum in 6 years at simple interest. What will be the compound interest on Rs. 12000 for 3 years at the same rate?
  • A. Rs. 2160
  • B. Rs. 3120
  • C. Rs. 3972
  • D. Rs. 6240
Correct Answer: C
Explanation:
Rate = 10%, CI = 12000[(1.1)³ − 1] = 3972.
Related Question 2
The simple interest on Rs. 12000 for 5 years is Rs. 7200. Find the compound interest for the same period and rate.
  • A. Rs. 3502.80
  • B. Rs. 3052.40
  • C. Rs. 3054.80
  • D. Rs. 3052.80
Correct Answer: D
Explanation:
Rate = 12%, apply the compound interest formula.
Related Question 3
The simple interest and true discount on a certain sum for a given time at a given rate are Rs. 85 and Rs. 80, respectively. Find the sum.
  • A. Rs. 1800
  • B. Rs. 1450
  • C. Rs. 1360
  • D. Rs. 6800
Correct Answer: C
Explanation:
Using the relation between SI and TD, the principal is Rs. 1360.
Related Question 4
The simple interest on Rs. 49500 for 3 years is Rs. 17820. What is the compound interest on the same sum and time at the same rate?
  • A. Rs. 20043.94
  • B. Rs. 18654.81
  • C. Rs. 20264.46
  • D. Rs. 19612.41
Correct Answer: A
Explanation:
First, find the rate from SI, then apply the CI formula to get Rs. 20043.94.
Related Question 5
If the difference between compound and simple interest for 2 years is Rs. 50 on Rs. 1000, find the rate?
  • A. 5%
  • B. 10%
  • C. 7%
  • D. 8%
Correct Answer: A
Explanation:
Difference = P(R/100)² → R = 5%.