New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    Question

    Rs. 11000 invested for 2 years in a scheme offering

    compound interest (compounded annually) of 15% p.a. gives an interest that is Rs. 30 less than the interest received on investing Rs. Y for a year at simple interest of 30% p.a.. Find the value of ‘Y’.
    A 11925 Correct Answer Incorrect Answer
    B 11025 Correct Answer Incorrect Answer
    C 11325 Correct Answer Incorrect Answer
    D 11905 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Interest returned on investing Rs. 11000 = 11000(1 + 15/100)2 – 11000 = 11000(115/100)2 – 11000 = 11000(23/20)2 – 11000 = 11000{232/202)- 1} = 11000{529/400)- 1} = 11000(529 - 400)/400 = Rs. 3547.5 So, interest returned on investing Rs. Y for 1 year at simple interest of 30% p.a. = 3577.5 + 30 = Rs. 3577.5 Or, Y × (30/100) = 3577.5 Or, Y = 3577.5 × (100/30) Or, Y = 11925

    Practice Next