13 Views

Question : The compound interest (compounding annually) on a certain sum for 2 years at the rate of 60% per annum is INR 6240. What will be the simple interest on the same sum for 3 years at the same rate of interest?

Option 1: INR 6800

Option 2: INR 7200

Option 3: INR 7100

Option 4: INR 6500


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: INR 7200


Solution : Rate, $R$ = 60%
Term, $n$ = 2 years
Compound interest = INR 6240
Let $P$ be the principal sum.
When compounded annually,
Compound interest = $P(1+\frac{R}{100})^n - P$
$⇒6240 = P(1+\frac{60}{100})^2 - P$
$⇒6240 = P(1+\frac{3}{5})^2-P$
$⇒6240 = P(\frac{8^2}{5^2})-P$
$⇒6240 = P(\frac{64}{25}-1)$
$⇒6240 = P×\frac{39}{25}$
$⇒P = \frac{6240×25}{39}$
$\therefore P = 4000$
Now, $ n = 3$ years
Simple interest = $\frac{PnR}{100}=\frac{4000 × 3 × 60}{100}= 7200$
Hence, the correct answer is INR 7200.

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