ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    If the difference between the

    compound interest (compounded annually) and the simple interest accrued over two years at a rate of 20% per annum is тВ╣400, determine the principal amount invested.
    A 10,000 Correct Answer Incorrect Answer
    B 11,000 Correct Answer Incorrect Answer
    C 12,500 Correct Answer Incorrect Answer
    D 16,250 Correct Answer Incorrect Answer

    Solution

    ATQ, Let the sum invested be Rs. 'S' Simple interest earned = {(S ├Ч 20 ├Ч 2)/100} = Rs. '0.4S' Compound interest = S ├Ч [{1 + (20/100)}2 - 1] = Rs. '0.44S' ATQ; 0.44S - 0.4S = 400 Or, 0.04S = 400 So, S = 10,000

    Practice Next
    More Approximation Questions

    Relevant for Exams:

    ask-question