Question : The simple interest on a certain sum of money for 2 years at 5% is Rs. 1600. The compound interest at the same rate after 3 years (interest compounded annually) is:
Option 1: Rs. 2520
Option 2: Rs. 2522
Option 3: Rs. 2555
Option 4: Rs. 2535
Latest: SSC CGL preparation tips to crack the exam
Don't Miss: SSC CGL complete guide
New: Unlock 10% OFF on PTE Academic. Use Code: 'C360SPL10'
Correct Answer: Rs. 2522
Solution : Rate, $R$ = 5% Time, $n$ = 2 years Simple interest, SI = Rs. 1600 Let the principal be Rs. $P$. Simple interest after 2 years = $\frac{PnR}{100}$ ⇒ 1600 = $\frac{P × 2 × 5}{100}$ ⇒ $P$ = Rs. 16000 When compounded annually, compound interest after $n$ years = $P[(1+\frac{R}{100})^{n} –1]$ Rate, $R$ = 5% Time, $n$ = 3 years So, the compound interest after 3 years = $16000[(1+\frac{5}{100})^{3} –1]$ = $16000 × [(\frac{21}{20})^3-1]$ = $16000× (\frac{1261}{8000})$ = Rs. 2522 Hence, the correct answer is Rs. 2522.
Candidates can download this ebook to know all about SSC CGL.
Admit Card | Eligibility | Application | Selection Process | Preparation Tips | Result | Answer Key
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:
Question : A sum of money invested at 20% compound interest (compounded annually). It would fetch Rs. 723 more in 2 years if interest is compounded half-yearly. The sum is:
Question : If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, the compound interest on the same at the same rate and for the same time is:
Question : A sum of money amounts to Rs. 6655 at the rate of 10% compounded annually for 3 years. The sum of money is:
Question : The difference between simple and compound interest (compounded annually) on a sum of money for 3 years at 10% per annum is Rs. 93. The sum (in Rs.) is:
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile