LIC AAO Model Paper 7

Question : 48 of 160

Marks: +1, -0

What was the total compound interest on a sum after three years?
I. The interest after one year was Rs. 100/- and the sum was Rs. 1,000/-.
II. The difference between simple and compound interest on a sum of Rs. 1,000/-at the end of two years was Rs. 10/-

Validate

Solution:

From the statement I,
r =

{100×100}/{1000}

= 10%
Thus we have,
P=Rs. 1000,
r = 10%, t = 3years
Hence, C.I. can be determined From the statement II
S.I. =

{1000×r×2}/{100}

= 20r
C.I. = 1000

[(1+r/{100})^2-1]

∴ C.I. - s.I
= 1000

[{200r+r^2}/{10000}]

- 20r
⇒ 2000r +

r^2

- 200r = 100
⇒ r = 10
Hence, C.I. can be determined

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