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

    Register

    Question

    A man invested a certain amount of sum at 13.5%

    per annum simple interest and earned an interest of Rs 13500 after 2 years. If the same amount is invested at 20% per annum compound interest, compounded annually for two years then the interest would be:
    A Rs. 46250 Correct Answer Incorrect Answer
    B Rs. 34500 Correct Answer Incorrect Answer
    C Rs. 22000 Correct Answer Incorrect Answer
    D Rs. 44680 Correct Answer Incorrect Answer
    E Rs. 33750 Correct Answer Incorrect Answer

    Solution

    Let the certain sum of money be Rs. P
    So, P × 0.135 × 2 = 13500
    So, P = Rs. 50000
    Desired interest = [(1.20)2 – 1] × 50000 = Rs. 22000

    Practice Next