SSC MTS 5 Aug 2019 Shift 3 Paper

Question : 35 of 100

Marks: +1, -0

The simple interest on a certain sum for two years at the rate of 20% per annum is Rs. 250. What is the compound interest (compounded annually) on the same sum for the same period at the same rate of interest?

Rs. 275
Rs. 550
Rs. 750
Rs. 900

Validate

Solution:

Formula, Simple interest = PRT/100
⇒ 250 = (P × 20 × 2)/100
⇒ P = Rs. 625
⇒ C.I. = P[(1 + r/100)

^\t

– 1]
⇒ C.I. = 625[(6/5)

^2

– 1]
⇒ C.I. = 25 × 11 = Rs. 275
∴ The compound interest is Rs. 275.

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