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

    Register

    Question

    Find the rate of simple interest at which Rs. 8500

    should be invested for 2 years so that the interest earned will be same as the interest received when the same amount is invested at 10% at compound interest compounded annually for same time period.
    A 23% Correct Answer Incorrect Answer
    B 10.5% Correct Answer Incorrect Answer
    C 25% Correct Answer Incorrect Answer
    D 27% Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Compound interest earned in 2 years = 8500 times; [(1.1)^2 ndash; 1] = 0.21 times; 8500 = Rs. 1785 Let the rate of simple interest is R% According to question, (8500 times; R times; 2)/100 = 1785 170 times; R = 1785 R = 10.5%

    Practice Next