New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Find the rate of simple interest at which Rs. 6000

    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 40% at compound interest compounded annually for same time period.
    A 48% Correct Answer Incorrect Answer
    B 40% Correct Answer Incorrect Answer
    C 45% Correct Answer Incorrect Answer
    D 46% Correct Answer Incorrect Answer

    Solution

    Compound interest earned in 2 years = 6000 × [(1.40)^2 – 1] = 0.96 × 6000 = Rs. 5760 Let the rate of simple interest is R% According to question, (6000 × R × 2)/100 = 5760 120 × R = 5760 R = 48%

    Practice Next