Compound Interest Practice Test 5

Question : 23 of 40

Marks: +1, -0

The compound interest on a certain sum of money for 2 years at 10% per annum is Rs 420. The simple interest on the same sum at the same rate and for the same time will be:

Rs 350
Rs 375
Rs 380
Rs 400

Validate

Solution:

Amount = Rs 420; Time = 2 years; Rate = 10%

420=[P(1+10/100)^2]-P

420=P(121/100-1)

P=420×100/21=2000

Now find the simple interest on the same sum of money with the same rate of interest at the same time.

SI={2000×10×2}/100=400

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