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      Question

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

      annum simple interest and earned an interest of Rs 5000 after 2 years. If the same amount is invested at 24% 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. 13440 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 × 0.10 × 2 = 5000
      So, P = Rs. 25000
      Desired interest = [(1.24)2 – 1] × 25000 = Rs. 13440

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