πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!
  • google app store apple app store
    • βœ–

      Question

      The difference between the compound interest, compounded

      annually and simple interest on Rs. β€˜P’ at the rate of 25% p.a. for 2 years, is Rs. 100. If Rs. (P + 1600) is invested at the same rate p.a., then find the compound interest, compounded annually earned after 3 years.
      A Rs. 3591 Correct Answer Incorrect Answer
      B Rs. 3355 Correct Answer Incorrect Answer
      C Rs. 3050 Correct Answer Incorrect Answer
      D Rs. 3822 Correct Answer Incorrect Answer

      Solution

      Using formula Difference = Sum(R/100)2 Or, 100 = P(25/100)2 Or, 100 = P(625/10000) Or, 0.0625P = 100 Or, P = 1600 Sum that is invested on compound interest = 1600 + 1600 = Rs. 3200 Compound interest = 3200(1 + 25/100)3 – 3200 = 3200 Γ— (5/4) Γ— (5/4) Γ— (5/4) – 3200 = 6250 – 3200 = Rs. 3050

      Practice Next
      More Simple and compound interest Questions
      ask-question