Question : The simple interest on a sum of money at 10% per annum for 2 years is 8,100. Compounded annually, what would be the compound interest (in ) on the same sum for the same period at the same rate of interest?
Option 1: 8,100
Option 2: 8,505
Option 3: 8,715
Option 4: 9,000
Correct Answer: 8,505
Solution : Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$ According to the question $⇒ 8100 = \frac{\text{Principal}×10×2}{100}$ $\therefore$ Principal $= 40500$ Now, $\text{Total Amount}$ $=\text{Principal}×(1+\frac{\text{Rate}}{100})^{\text{Time}}$ $ = 40500({1+ \frac{10}{100})^2}$ $ = 40500({ \frac{11}{10})^2}$ $ = 40500×{ \frac{121}{100}}$ $=49005$ $\therefore$ Compound Interest = Amount – Principal = 49005 – 40500 = 8505 Hence, the correct answer is 8505.
Result | Eligibility | Application | Selection Process | Cutoff | Admit Card | Preparation Tips
Question : The simple interest on a sum of money at 10% per annum for 2 years is INR 8,100. What would be the compound interest (in INR) on the same sum for the same period at 15% p.a, when the interest is compounded yearly? (nearest to INR 1)
Question : A sum of money amounts to INR 1,200 in 2 years and becomes INR 1,260 in 3 years at compound interest when interest is compounded annually. What is the rate of compound interest per annum?
Question : On a certain sum of money, the simple interest for 2 years is Rs. 350 at the rate of 4% per annum. It was invested at compound interest at the same rate for the same duration as before, how much more interest would be earned?
Question : If the difference between the compound interest and simple interest at 17%; on a sum of money for 2 years (compounded annually) is INR 433.50, then the compound interest (in INR) is:
Question : If the difference between the compound interest and simple interest at 17% on a sum of money for 2 years (compounded annually) is INR 433.50, then the sum (in INR) is:
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile