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

    Question

    The difference between the compound interest, compounded

    annually and simple interest on Rs. ‘P’ at the rate of 20% p.a. for 2 years, is Rs. 150. If Rs. (P + 1500) 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
    E Rs. 2548 Correct Answer Incorrect Answer

    Solution

    Using formula Difference = Sum(R/100)2 Or, 150 = P(20/100)2 Or, 150 = P(400/10000) Or, 0.0400P = 150 Or, P = 3750 Sum that is invested on compound interest = 3750 + 1500 = Rs. 5250 Compound interest = 5250(1 + 20/100)3 – 5250 = 5250 × (6/5) × (6/5) × (6/5) – 5250 = 9072 – 5250 = Rs. 3822

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question