Question

A man invested a certain amount of sum at 11% per annum simple interest and earned an interest of Rs. 2200 after 2 years. If the same amount is invested at 25% per annum compound interest, compounded annually for two years then the interest would be:

A Rs. 5625 Correct Answer Incorrect Answer
B Rs. 5225 Correct Answer Incorrect Answer
C Rs. 5680 Correct Answer Incorrect Answer
D Rs. 5468 Correct Answer Incorrect Answer
E Rs. 5568 Correct Answer Incorrect Answer

Solution

Let the certain sum of money be Rs. P
So, P × 0.11 × 2 = 2200
So, P = Rs. 10000
Desired interest = [(1.25)2 – 1] × 10000 = Rs. 5625

Practice Next
×
×