2 Views

Question : If the difference between the compound interest and simple interest at 17% on a sum of money for 2 years (compounded annually) is INR 433.50, then the sum (in INR) is:

Option 1: 15,000

Option 2: 25,000

Option 3: 20,000

Option 4: 12,000


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: 15,000


Solution : Difference between Compound Interest and Simple Interest for 2 years = $\frac{PR^{2}}{100^{2}}$ where $R$ is the rate of interest per annum compounded annually and $P$ is principal.
⇒ 433.50 = $P × \frac{17}{100}$ × $\frac{17}{100}$
⇒ 43350 × 100 = $P$ × 289
⇒ $P$ = $\frac{4335000}{289}$ = INR 15,000
Hence, the correct answer is 15,000.

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
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