Question

    A sum of ₹ 2,400 compounded annually at a certain rate of compound interest in 2 years amounts to ₹ 2,904. What will be the simple interest (in ₹) on the amount at the same time and at the same interest rate?

    A 436 Correct Answer Incorrect Answer
    B 460 Correct Answer Incorrect Answer
    C 480 Correct Answer Incorrect Answer
    D 389 Correct Answer Incorrect Answer

    Solution

    Solution- A=2904, P=2400. n=2 years. A=P(1+r/100) ² (2904/2400) =(1+r/100) ² 121/100=(1+r/100) ² r/100= (11/10)-1 r/100=1/10 r=10%. SI = (2400×10×2)/100 =480 Rs.

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