📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    The difference between compound interest and simple

    interest at rate of 28% per annum for 2 years is Rs. 392. 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. 1000 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 + 28/100)2 – 1] – P × 28% × 2 = 392 P × 0.6384 – P × 0.0784 = 392 P × 0.0784 = 392 P = 392 ÷ 0.0784 = Rs. 5000 Therefore, required interest = 5000 × 10% × 2 = Rs. 1000

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question