New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Kiran lent Rs. 40,000 to a friend at a compound interest

    rate of 'b%' per annum, compounded annually. After one year, the friend returned Rs. 44,800. If Kiran had lent the money at simple interest of (b + 2)% per annum instead, how much interest would he have earned?
    A Rs.2500 Correct Answer Incorrect Answer
    B Rs.5500 Correct Answer Incorrect Answer
    C Rs.4100 Correct Answer Incorrect Answer
    D Rs.5600 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, Determine the compound interest rate 'b': Compute the simple interest: The interest earned would have been Rs.5600.

    Practice Next

    Relevant for Exams: