AFCAT Model Paper 2

Given:
Compound Interest on a sum for 2 years at 11% p.a. = Rs.4642
Formulas used:Compound Interest + Principal = Amount
⇒ Amount = Principal ×(1+

R

100

)n
Simple Interest = Principal × Rate/100 × Time
Calculation:
4642+P=P×(1+

11

100

)2
⇒ 4642=P×

111

100

×

111

100

−P
⇒ 4642=P(

111

100

×

111

100

−1)
⇒ 4642=P

(12321−10000)

10000

⇒ 4642=P×

2321

10000

⇒ P=4642×

10000

2321

⇒ P = Rs.20000
∴ Simple Interest =20000×

11

100

×2= Rs.4400