M4maths Previous Puzzles

06 Apr 2017 Compound and Simple Interest

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 48. The sum is:

OPtion

1) 4375
2) 5625
3) 5000
4) 7500
5) 6250
6) 6500
7) 7000
8) 7250
9) 6750
10) None of these

Solution

Given that difference between compound interest and simple interest is Rs.48
= > 48 = P(4/100)^2
= > 48 = P(1/25)^2
= > 48 = P(1/625)
= > P = 30000

Correct Option: 10 Best Solution (0)