📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Find the rate of simple interest at which Rs. 10000

    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 30% at compound interest compounded annually for same time period.
    A 34.5% Correct Answer Incorrect Answer
    B 30.5% Correct Answer Incorrect Answer
    C 37.5% Correct Answer Incorrect Answer
    D 38.5% Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Compound interest earned in 2 years = 10000 × [(1.30)^2 – 1] = 0.69 × 10000 = Rs. 6900 Let the rate of simple interest is R% According to question, (10000 × R × 2)/100 = 6900 200 × R = 6900 R = 34.5%

    Practice Next
    More Simple and compound interest Questions
    ask-question