41 Views

Question : A deposited INR 1,56,250 at 8% simple interest for 2 years. How much more money will A have in his account at the end of two years, if at the same rate of interest, the sum is invested in compound interest, compounded annually?

Option 1: INR 1,740.90

Option 2: INR 1,000

Option 3: INR 2,000

Option 4: INR 1,540.40


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: INR 1,000


Solution : Principal Amount, $P$ = INR 156250
Rate of interest, $R$% = 8%
Difference between Simple interest and Compound interest for 2 years = $P(\frac{R}{100})^2$ where $P$ is principal, $R$ is the rate of interest.
Extra interest = Difference between Simple interest and Compound interest for 2 years
= $156250\times (\frac{8}{100})^2$
= INR 1000
Hence, the correct answer is INR 1,000.

How to crack SSC CHSL

Candidates can download this e-book to give a boost to thier preparation.

Download Now

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
GRE ® Registrations 2024
Apply
Apply for GRE® Test now & save 10% with ApplyShop Gift Card | World's most used Admission Test for Graduate & Professional Schools
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books