New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Simple interest on a sum for 2 years is Rs. 300 and

    compound interest for same period is Rs. 315. Find the principal. (Rate of interest is same for both.)
    A Rs 1000 Correct Answer Incorrect Answer
    B Rs 2000 Correct Answer Incorrect Answer
    C Rs 1500 Correct Answer Incorrect Answer
    D Rs 1200 Correct Answer Incorrect Answer

    Solution

    Simple interest = 300
    Principal x Rate x 2 = 30000
    Principal x Rate = Rs.15000 ... (1)
    Now, Simple interest for 2 years = Rs.300
    Compound interest for 2 years = Rs.315
    Difference between SI and CI for 2 years = Rs.15
    Which can also be written as,
    Principal x Rate x Rate/10000 = 15
    From eq(1),
    15000 x Rate = 150000
    Rate = 10%
    From eq(1),
    Principal = 15000/10 = Rs.1500

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