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    Question

    An amount of Rs. β€˜P’ was invested at an interest

    rate of β€˜R%’ per annum, compounded annually. After 2 years, the compound interest earned was Rs. 2700 and the simple interest earned was Rs. 2400. What is the value of β€˜P’?
    A Rs.3800 Correct Answer Incorrect Answer
    B Rs.4000 Correct Answer Incorrect Answer
    C Rs.5520 Correct Answer Incorrect Answer
    D Rs.4800 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Simple interest for 1 year = 2400 Γ· 2 = Rs. 1200 Difference between compound interest and simple interest after 2 years = 2700 – 2400 = Rs. 300 So, R = (300 Γ· 1200) Γ— 100 = 25% Now, P = 1200 Γ· 0.25 = Rs. 4800

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