New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    Question

    A man invested a certain amount of sum at 10% per

    annum simple interest and earned an interest of Rs. 2600 after 2 years. If the same amount is invested at 10% per annum compound interest, compounded annually for two years then the interest would be:
    A Rs. 3168 Correct Answer Incorrect Answer
    B Rs. 2730 Correct Answer Incorrect Answer
    C Rs. 3368 Correct Answer Incorrect Answer
    D Rs. 3468 Correct Answer Incorrect Answer
    E Rs. 3568 Correct Answer Incorrect Answer

    Solution

    Let the certain sum of money be Rs. P
    So, P × 0.10 × 2 = 2600
    So, P = Rs. 13000
    Desired interest = [(1.1)2 – 1] × 13000 = Rs. 2730

    Practice Next