Compound Interest Practice Test 1

Question : 16 of 40

Marks: +1, -0

The difference between the simple and compound interest on a certain sum of money at 5% p.a. for 2 years is Rs 160. Find the sum.

Solution:

Let the sum of money = Rs x

SI={x×5×2}/{100}=x/10

CI=x(1+5/100)^2-x

=441/400x-x=41/400x

Difference between the simple and compoundinterest = 160

⇒41/400x-x/10=160

{41x-40x}/400=160

x = 160 ×400 =\Rs 64,000

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