Question

A man invested a certain amount of sum at 12.5% per annum simple interest and earned an interest of Rs.2500 after 2 years. If the same amount is invested at 20% per annum compound interest, compounded annually for two years, then find the interest.

A Rs.1470 Correct Answer Incorrect Answer
B Rs.3168 Correct Answer Incorrect Answer
C Rs.1008 Correct Answer Incorrect Answer
D Rs.4400 Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

Let the certain sum of money be Rs.P. So,  P x 0.125 x 2 = 2500 => P = Rs.10000 Desired interest = [(1.2)2 – 1] x 10000 = Rs.4400

Practice Next
×
×