Discussion
Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:
Answer: C
\[ A = P\left(1 + \frac{R}{100}\right)^{n}, \qquad \text{CI} = A - P, \qquad \text{SI} = \frac{PRn}{100} \]
Work out the compound interest first.
\[ \text{CI} = 4000\left[(1.1)^{2} - 1\right] = 4000(1.21 - 1) = \text{Rs. } 840 \]
The simple interest is half of that:
\[ \text{SI} = 420 \]
\[ 420 = \frac{P \times 8 \times 3}{100} = 0.24P \]
\[ P = \frac{420}{0.24} = \text{Rs. } 1750 \]
The two sums are unrelated; the only link is the numerical value of the interest, so the compound side must be finished before the simple side can begin.
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development