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

    Question

    Suresh earned an interest of Rs. 516 on principal amount

    of Rs. 1600 at some rate of compound interest in 2 years. How much more/less interest would he have earned on Rs. 1900 at the same rate of simple interest for the same duration?
    A Rs. 72 Correct Answer Incorrect Answer
    B Rs. 45 Correct Answer Incorrect Answer
    C Rs. 57 Correct Answer Incorrect Answer
    D Rs. 54 Correct Answer Incorrect Answer
    E Rs. 81 Correct Answer Incorrect Answer

    Solution

    Let, rate of interest be ‘r’% per annum So, 516 = 1600 × {(1 + r/100)2 – 1} 129/400 = {(1 + r/100)2 – 1} 529/400 = (1 + r/100)2 (23/20)2 = (1 + r/100)2 23/20 = 1 + r/100 3/20 = r/100, r = 15 So, simple interest earned = 1900 × 0.15 × 2 = Rs. 570 Required amount = 570 – 516 = Rs. 54

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question