Question

    Ujwal took a loan at 18% per annum simple interest for 2

    years and repaid a total of Rs. 40,800. If he had instead taken the same loan at r % per annum compound interest, compounded annually for 2 years, he would have paid Rs. 2,400 more in interest. Find the value of r.
    A 10 Correct Answer Incorrect Answer
    B 15 Correct Answer Incorrect Answer
    C 12 Correct Answer Incorrect Answer
    D 18 Correct Answer Incorrect Answer
    E 20 Correct Answer Incorrect Answer

    Solution

    Let principal = Rs. P
    Given, P + (P * 18 * 2)/100 = 40800
    => P = 30000
    S.I = 40800 - 30000 = Rs. 10800
    C.I = 10800 + 2400 = Rs. 13200
    Total amount at C.I = 30000 + 13200 = Rs. 43200
    30000(1+r/100) 2  = 43200
    =>(1+r/100) 2  = 144/100
    => 1 + r/100 = 12/10
    =>r = 20

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