Compound Interest Practice Test 3

Question : 8 of 40

Marks: +1, -0

The compound interest on a certain sum of money invested for 3 years at 5% per annum is Rs. 1891.50. What will be the simple interest on the same sum at the same rate for 2 years?

Rs. 1700
Rs. 1200
Rs. 1500
Rs. 2100

Validate

Solution:

Here,

1891.50=P[(1+5/100)^3-1]

⇒1891.50=P[(21/20)^3-1]

⇒1891.50=P(1261/8000)

⇒P=12000

Now,

SI={12000×5×2}/100=1200

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