Compound Interest Practice Test 3

Question : 18 of 40

Marks: +1, -0

The difference between compound interest (compounded annually) and simple interest on a certain sum of money at 10% per annum for 2 years is Rs. 40. Find the sum.

Rs. 3200
Rs. 3600
Rs. 4000
Rs. 4200

Validate

Solution:

Here,

P[(1+10/100)^2-1]-{P×10×2}/100=40

⇒P[121/100-1]-{20P}/100=40

⇒[21/100-20/100]=40

∴ P = 40 × 100 = Rs. 4000

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