New 55% Off on All Courses - Enroll Now! Click Here

    Question

    A particular sum of money, when

    invested at a simple interest rate, yields Rs. 3,000 as interest after 2 years. The same sum, when invested at compound interest (compounded annually) for the same period and at the same rate, yields Rs. 3,300 as interest. What is the principal sum?
    A Rs 7,500 Correct Answer Incorrect Answer
    B Rs 7,000 Correct Answer Incorrect Answer
    C Rs 7,550 Correct Answer Incorrect Answer
    D Rs 7,390 Correct Answer Incorrect Answer

    Solution

    ATQ, SI received for 1 year = (3000/2) = Rs. 1,500 Difference between CI and SI for 2 years = 3300 - 3000 = Rs. 300 This means Rs. 300 is the interest received on Rs. 1,500 Therefore, rate of interest = (300/1500) = 20% Let the sum invested be Rs. 'P' Now, since SI received for 1 year is Rs. 1500 Therefore, (P × 0.2 × 1) = 1500 Or, 'P' = (1500/0.2) = 7500 Therefore, sum invested = Rs 7,500

    Practice Next

    Relevant for Exams: