Question : At a certain sum of money with the interest rate of 6% per annum for 4 years, the simple interest is Rs. 4500. Find the compound interest (compounding annually) of 2 years at the same sum when the rate of interest is 4% per annum.
Option 1: Rs. 1,530
Option 2: Rs. 1,430
Option 3: Rs. 1,830
Option 4: Rs. 1,560
New: SSC CHSL Tier 2 answer key released | SSC CHSL 2024 Notification PDF
Recommended: How to crack SSC CHSL | SSC CHSL exam guide
Don't Miss: Month-wise Current Affairs | Upcoming government exams
Correct Answer: Rs. 1,530
Solution :
Simple Interest $= \frac{P\times R\times T}{100}$
⇒ $4500 = \frac{P × 6 × 4}{100}$
⇒ $P = \frac{4500 × 100}{6 × 4}$
⇒ $P = 750 × 25 = \text{Rs. }18750$
Now, Compound Interest $= P(1 + \frac{R}{100})^T- P$
⇒ $CI= 18750(1 + \frac{4}{100})^2 - 18750$
⇒ $CI = 18750\times(\frac{26}{25})^2 - 18750$
⇒ $CI = 18750 × \frac{676}{625} - 18750$
⇒ $CI = 20280 - 18750 =1530$
Hence, the correct answer is Rs. 1530.
Related Questions
Know More about
Staff Selection Commission Combined High ...
Result | Eligibility | Application | Admit Card | Answer Key | Preparation Tips | Cutoff
Get Updates Brochure
Your Staff Selection Commission Combined Higher Secondary Level Exam brochure has been successfully mailed to your registered email id “”.
Upcoming Exams
Trending Articles around SSC CHSL
