2 Views

Question : The difference between simple and compound Interest compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 8. The sum is:

Option 1: Rs. 10,000

Option 2: Rs. 20,000

Option 3: Rs. 5,000

Option 4: Rs. 15,000


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Rs. 5,000


Solution : Given: The difference between simple interest (SI) and compound interest (CI) compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 8.
Time = 2 years
Rate ($R$) = 4% per annum
Let the principal be Rs. $P$.
Formula Used:
The difference between CI and SI for the same sum and same rate for 2 years = $\frac{PR^2}{10000}$
⇒ $8 =P\times \frac{4^2}{10000}$
⇒ $P = 5000$
Hence, the correct answer is Rs. 5,000.

SSC CGL Complete Guide

Candidates can download this ebook to know all about SSC CGL.

Download EBook

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