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

    Question

    Rina lent Rs. 18,000 to her brother at a compound

    interest rate of 'y%' per annum, compounded annually. After one year, her brother paid her Rs. 19,440 to clear his debt. If Rina had lent the money at simple interest of (y + 4)% per annum instead, for the same period, how much interest would she have earned?
    A Rs.2160 Correct Answer Incorrect Answer
    B Rs.2125 Correct Answer Incorrect Answer
    C Rs.3260 Correct Answer Incorrect Answer
    D Rs.1260 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, First, calculate the compound interest rate 'y': Now, compute the interest with simple interest formula at (y + 4)%: Hence, Required interest =     Rs.2160 She would have earned Rs. 2160 in interest.

    Practice Next

    Relevant for Exams: