simple-compound-interest-l2 MCQ — 10 Practice Questions with Answers

Explanation

Imran’s answer is a classic transfer error. He treats compound growth like simple interest by adding 10 percent three times on the original base. A year table would show the base should become Rs 1100 and then Rs 1210.

Explanation

Population growth and depreciation both transfer the same repeated-percentage idea. Meena can compare starting value, direction of change, percent change and final value to see the link without learning a new formula.

Explanation

After the first compounding interval, compound interest begins to use a larger base. That is why Devika should expect it to be usually greater than simple interest when rate is positive and time is more than one period.

Explanation

The assertion-reason pair is fully correct. In year one, both simple and compound calculations start from Rs 2000. The compound rule becomes different from year two onward because the amount has changed.

Explanation

The year-wise table is a concept-building tool. It lets Asha see simple interest hold the principal constant while compound interest updates the base after each year. That makes the formula meaningful later.