New Click here to Enroll for SIDBI MSME Expert Class by ex-GM, SBI on Nov 24

    Register

    Question

    Calculate the principal amount 'x' for which the simple

    interest accrued over 5 years at an annual rate of 24% is equivalent to the compound interest earned in 2 years on an amount of Rs. (x – 50), compounded annually at a rate of 50%. What is the value of 'x'?
    A 1000 Correct Answer Incorrect Answer
    B 1500 Correct Answer Incorrect Answer
    C 1200 Correct Answer Incorrect Answer
    D 1600 Correct Answer Incorrect Answer
    E 1250 Correct Answer Incorrect Answer

    Solution

    According to the question, {(x × 24 × 5)/100} = (x - 50)(1 + 50/100)2 – (x - 50) Or, 1.2x = 1.25x - 62.5 Or, x = 62.5/0.05 = 1250 Hence, option e.

    Practice Next

    Relevant for Exams: