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    • Question

      A man invested a certain amount of sum at 18% per

      annum simple interest and earned an interest of Rs 18000 after 2 years. If the same amount is invested at 21% 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. 23205 Correct Answer Incorrect Answer
      E Rs. 33750 Correct Answer Incorrect Answer

      Solution

      Let the certain sum of money be Rs. P
      So, P × 0.18 × 2 = 18000
      So, P = Rs. 50000
      Desired interest = [(1.21)2 – 1] × 50000 = Rs. 23205

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