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

    Question

    Asmita invested Rs. 3200 for 2 years at an annual simple

    interest rate of r%, while Shreya invested the same sum as Asmita for 2 years at an annual compound interest rate of r%, compounded annually. If the difference between the interest earned by Asmita and Shreya is Rs. 200, calculate the amount received by Asmita.
    A Rs.9800 Correct Answer Incorrect Answer
    B Rs.4500 Correct Answer Incorrect Answer
    C Rs.6800 Correct Answer Incorrect Answer
    D Rs.4800 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, Difference between the simple interest and compound interest for two years is given by PR2/1002 Where P = sum invested and R = rate of interest ATQ, Pr2/1002 = 200 Or, r2 = (200 × 100 × 100)/3200 = 625 Or, r = 25 (Since, rate cannot be negative) Therefore, amount received by ‘Asmita’ = {(3200 × 25 × 2)/100} + 3200 = Rs.4800

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question