ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    A certain amount becomes Rs. 4200 in 4 years and Rs. 4800

    in 6 years at simple interest. Find the interest earned if the same sum is invested at 20% p.a. compound interest, compounded annually for 2 years.
    A Rs.1320 Correct Answer Incorrect Answer
    B Rs.1220 Correct Answer Incorrect Answer
    C Rs.1052 Correct Answer Incorrect Answer
    D Rs.2500 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ,

    Simple interest earned in two years = 4800 тАУ 4200 = Rs. 600

    Simple interest earned in 1 year = Rs. 300

    So, sum invested = 4200 тАУ 4 ├Ч 300 = 4200 тАУ 1200 = Rs. 3000

    Desired interest = [(1.20)┬▓ тАУ 1] ├Ч 3000 = 0.44 ├Ч 3000 = Rs. 1320

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question