2 Views

Question : On a certain sum of money, the simple interest for 2 years is Rs. 350 at the rate of 4% per annum. It was invested at compound interest at the same rate for the same duration as before, how much more interest would be earned?

Option 1: Rs. 3.50

Option 2: Rs. 7

Option 3: Rs. 14

Option 4: Rs. 35


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 9th Jan, 2024

Correct Answer: Rs. 7


Solution : The difference between simple and compound interest for 2 years equals interest on the first year's interest.
Given: Simple Interest for 2 years = Rs. 350
So, interest for the first year = Rs. 175
$\therefore$ The difference between simple and compound interest for 2 years = 4% of 175 = Rs. 7
Hence, the correct answer is Rs. 7

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