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

    Question

    Rs. 16000 invested for 2 years in a scheme offering

    compound interest (compounded annually) of 15% p.a. gives an interest that is Rs. 25 less than the interest received on investing Rs. Y for a year at simple interest of 25% p.a.. Find the value of ‘Y’.
    A 20040 Correct Answer Incorrect Answer
    B 22740 Correct Answer Incorrect Answer
    C 20740 Correct Answer Incorrect Answer
    D 23740 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Interest returned on investing Rs. 16000 = 16000(1 + 15/100)2 – 16000 = 16000(115/100)2 – 16000 = 16000(23/20)2 – 16000 = 16000{232/202)- 1} = 16000{529/400)- 1} = 16000(529 - 400)/400 = Rs. 5160 So, interest returned on investing Rs. Y for 1 year at simple interest of 25% p.a. = 5160 + 25 = Rs. 5185 Or, Y × (25/100) = 5185 Or, Y = 5185 × (100/25) Or, Y = 20740

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question