New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    A certain sum is invested for three years at rate of

    interest being 25% and it is invested in both simple interest and compound interest (compounded annually). If the difference between the compound interest and simple interest is Rs 650, then find the sum invested.
    A 2800 Correct Answer Incorrect Answer
    B 3200 Correct Answer Incorrect Answer
    C 3000 Correct Answer Incorrect Answer
    D 3600 Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Let the sum invested be A; Simple interest in three years: 3 × 25/100 × A => 3A/4 Compound interest in three years: A(1+25/100)3 – A => 61A/64 Difference between compound interest and simple interest= 13A/64 = 650 => A =3200.

    Practice Next

    Relevant for Exams: