New Register here for RBI, SEBI & NABARD strategy workshop! April 9 at 7 PM

    Question

    The difference between compound interest and simple

    interest at rate of 14% per annum for 2 years is Rs. 294. Find the simple interest obtained on same amount for a period of 2 years at rate of 10% per annum.
    A Rs. 2000 Correct Answer Incorrect Answer
    B Rs. 3000 Correct Answer Incorrect Answer
    C Rs. 2400 Correct Answer Incorrect Answer
    D Rs. 1500 Correct Answer Incorrect Answer
    E Rs. 1200 Correct Answer Incorrect Answer

    Solution

    Let, the amount be Rs. P. P[(1 + 14/100)2 – 1] – P × 14% × 2 = 294 P × 0.2996 – P × 0.28 = 294 P × 0.0196 = 294 P = 294 ÷ 0.0196 = Rs. 15000 Therefore, required interest = 15000 × 10% × 2 = Rs. 3000

    Practice Next