2 Views

Question : The difference between compound interest and simple interest on a sum at 20% per annum for two years is Rs. 420. Find the sum (in Rs.).

Option 1: Rs. 8,000

Option 2: Rs. 10,500

Option 3: Rs. 9,000

Option 4: Rs. 11,000


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Rs. 10,500


Solution : Given: The difference between compound interest and simple interest on a sum at 20% per annum for two years is Rs. 420.
The difference between compound interest (CI) and simple interest (SI) for 2 years is $\frac{P\times r^2}{(100)^2}$ where $P$ and $r$ are the principal and rate of interest respectively.
According to the question,
⇒ $420 =\frac{P\times (20)^2}{(100)^2}$
⇒ $P=\frac{100\times 100\times 420}{20\times 20}=$ Rs. 10,500
Hence, the correct answer is Rs. 10,500.

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