4 Views

Question : The difference between simple interest and compound interest on a certain sum of money in 2 years at 3% per annum is 90 paise. What is the sum?

Option 1: Rs. 9000

Option 2: Rs. 5000

Option 3: Rs. 3000

Option 4: Rs. 1000


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: Rs. 1000


Solution : Let the principal be $p$.
Rate, $r$ = 3%
Time = 2 years
Difference between Simple interest and compound interest $=P(\frac{r}{100})^2$
⇒ $90 = p(\frac{3}{100})^2$
⇒ $90=p×\frac{9}{10000}$
$\therefore p=100000$ paise = Rs.1000
Hence, the correct answer is Rs.1000.

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