Question

    A person deposited a sum at 7% simple interest per annum

    for 3 years. The interest he earned is Rs. 180 more than the compound interest he would have earned on Rs. 3000 at 9% p.a. for 2 years, compounded annually. What is the principal he deposited on simple interest?
    A Rs.3560.43 Correct Answer Incorrect Answer
    B Rs.3571.43 Correct Answer Incorrect Answer
    C Rs.2561.43 Correct Answer Incorrect Answer
    D Rs.3561.43 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ,

    Compound interest earned = 3000 × [(1.09)² – 1] = Rs. 567.9 Let the principal amount deposited on simple interest be Rs. ‘x’. (x × 7 × 3)/100 = 567.9 + 180 0.21x = 747.9, x = Rs. 3561.43 So, the principal amount deposited on simple interest = Rs.3561.43

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