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

    Question

    The compound interest on a certain amount for 2 years at

    4% per annum is ₹ 1,020, if interest is compounded annually. Find the simple interest on that amount for 2 years at 4% per annum?
    A ₹ 850 Correct Answer Incorrect Answer
    B ₹ 950 Correct Answer Incorrect Answer
    C ₹ 1,000 Correct Answer Incorrect Answer
    D ₹ 800 Correct Answer Incorrect Answer

    Solution

    Solution-

    Let the principal amount =1000

    Compound interest on 1000 Rs for 2 years at 4%=81.6

    ATQ-

    81.6=1020

    1=1020/81.6

    1000= (1020/81.6) ×1000

    P=12500

    Now- Simple interest for 2 years at 4% per annum

    =(12500×2×4)/100

    =1000Rs.

    Practice Next

    Relevant for Exams: