Compound Interest Practice Test 5

Question : 19 of 40

Marks: +1, -0

The difference between the simple and compound interests on a sum of money at the end of two years at the rate of 10% p.a. is Rs 100.What will be the total simple interest on that sum at the end of three years?

Rs 3,000
Rs 1,500
Rs 2,000
Data inadequate

Validate

Solution:

Let P = x T = 2 years R = 10%

SI={x×2×10}/100=x/5

CI=x(1+10/100)^2-x=21/100x

Now,

21/100x-x/5=100

⇒x/100=100

x = Rs 10,000
SI for three years on Rs 10,000

={10,000×3×10}/100=3000

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