Question : The difference between the simple and compound interest on a certain sum of money at an $8\%$ rate of interest per annum for two years is INR 56. Find the sum.
Option 1: INR 8750
Option 2: INR 7058
Option 3: INR 7805
Option 4: INR 8057
New: SSC CHSL tier 1 answer key 2024 out | SSC CHSL 2024 Notification PDF
Recommended: How to crack SSC CHSL | SSC CHSL exam guide
Don't Miss: Month-wise Current Affairs | Upcoming government exams
Correct Answer: INR 8750
Solution :
The difference between compound interest and simple interest for two years $\mathrm{= \frac{P \times R^2}{100^2}}$
where $\mathrm{P}$ is the principal amount (the sum of money) and $\mathrm{R}$ is the rate of interest.
Given that the difference is INR 56 and the rate of interest is $8\%$.
$56 = \mathrm{\frac{P \times 8^2}{100^2}}$
$⇒\mathrm{P} = \frac{56\times 100^2}{8^2} = \frac{560000}{64} = 8750$
Hence, the correct answer is INR 8750.
Related Questions
Know More about
Staff Selection Commission Combined High ...
Result | Eligibility | Application | Admit Card | Answer Key | Preparation Tips | Cutoff
Get Updates Brochure
Your Staff Selection Commission Combined Higher Secondary Level Exam brochure has been successfully mailed to your registered email id “”.
